Standards application administration Title VII of the Older Americans Act: nutrition programs for the elderly

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I ESD 11.2:N 87
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AlJ4nJISTRATION
lITLEVII
OF THE
NUTRITION PROGRAM.S ;FOR THE ELJ;)li1i1Y
STATE OF AP..IZQN.j\
DEPAltTMENT OJ ECONOMIC S]~CU~:r,rt
EU:-.EAU ON ~GINq
1711 West Jefferson,
P. 0. P"'.lt 6123
Phoer.;i A:, J.ri.zona 85007
•
This is to advise that the name Section on Aging has been re-designated
as follows:
Bureau on Aging
Department of Economic Security
1717 West Jefferson, P.O. Box 6123
Phoenix, Arizona 85005
Telephone: 271-4446
INDEX
CHAPTER I -- TIIFORMATION AND STANDARDS
Part I - General Provisions 1
Part II - Standards for State .Agency 4
Part III - Standards for Individual Project Operations 9
CHAPTER II -- APPLICATION FOR NUTRITION PROJEDT AWARD
Part I - Application Cover Sheet 59
Part II - Agreement to Conditions by Applicant Agency 62
Part III - Budget 65
Part IV - Plan for the Project 77
Part V - Compliance with Civil Rights Act 84
CHAPTER III -- COMMENTS REGARDING NOTIFICATION OF NUTRITION
PROJECT AWARD 86
CHAPTER IV QUARTERLY NUTRITION PROJECT REPORT 90
CHAPTER V -- QUARTERLY NUTRITION PROJECT FINANCIAL REPORT 95
CHAPTER VI -- REQUEST FOR PAYMENT OF FEDERAL FUNDS 101
CHAPTER I
INFORMATION AND STANDARDS
TrrLE VII OF 'lliE
OLDER AMERICANS ACT
ARIZONA· STATE DEPAR1'MENT OF ECONOMIC SECURITY
SECTION ON AGING
1624 West Adams
Phoenix, Arizona 85007
PART I
GENERAL PROVISIONS
Section 1 Purposes
Under the provisions of Public Law 92-258, signed by the
President on March 22, 1972, a national Nutrition Program
for the Elderly was added to the Older Americans Act of
1965. This program is designed to meet the nutritional
needs of individuals aged sixty and older who do not eat
adequately because: (1) they cannot afford to do so;
(2) they lack the knowledge and/or skills to select and
prepare nourishing and well-balanced meals; (3) they have
limited mobility which may impair their capacity to shop
and cook for themselves; and (4) they have feelings of
rejection and loneliness which obliterate the incentive
necessary to prepare and eat a meal alone. These and
other physiological, psychological, social and economic
changes that can occur with aging result in a pattern
of living which may cause malnutrition and further
physical and mental deterioration.
The purpose of this program is to provide older Americans,
particularly those with low incomes, with low cost,
nutritionally sound meals served in strategically located
centers such as schools, churches, community centers,
senior citizen centers, and other public or private facil­ities
where they can obtain other social and rehabilitative
services. Besides promoting better health among the older
segment of the population through improved nutrition, such
a program is aimed at reducing the isolation of old age,
offering older Americans an opportunity to live their
remaining years in dignity.
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Section 2 Definitions
For the purpose of this booklet the following definitions
apply:
a. Donated Foods
Donated Foods means foods made available by the United
States .Department of Agriculture (USDA) through the Food
Distribution Program for use by institutions and households
that have been detennined to be eligible for that program.
b. Ep.igible Individuals
Eligible individuals means those persons who are age sixty
or over and who:
(1) Cannot afford to eat adequately;
(2) Lack the skill and/or knowledge to select and prepare
nourishing and well-balanced meals;
(J) Have limited mobility which may impair their capacity
to shop and cook for themselves; or
(4) Have feelings of rejection and loneliness which obli­terate
the incentive necessary to prepare and eat a
meal alone.
'!he spouses of such individuals are also considered eligible
individuals.
c. Minority
Minority means those personswho identify themselves as
American Indian, Negro, Oriental, or Spanish language.
d. Nutrition Project
Nutrition project means a project providing the nutrition
services financed with Title vn funds and meeting the
requirements and standards set forth by Public Law 92-258,
the related Federal regulations and this booklet.
e. Nutrition Services
Nutrition services means the range of nutrition or dietetic
services that must be available and accessible to project
participants. Such services are:
(1) Meals served in congregate settings.
(2) Meals delivered to the homebound, where
necessary and feasible.
-2-
Definitions (Continued)
f. gtate Agenc.l
State agency means the single State agency established or
designated by the Governor as the sole agency for adminis­ter.
ing or supervising the administration of the Title VII
state Plan and coordinating operations under the Plan with
other agencies providing services to the elderly. In
Arizona this is the Department of Ebonomic Security which
has delegated many staff functions to its Section on .Aging.
g. ~EI?orting Social Services
Supporting social services means the range of social services
that must be available and accessible to project participants
as needed. These mandatory services consist of the following:
(1) Outreach
(2) Transportation
(3) Personal escort
(4) Information and Referral
(.5) Health and welfare counseling
(6) Nutrition education
(7) ~opping assistance
(8) Recreation incidental to the project
h. Target Group
Target group means those eligible individuals identified by
the State agency in the Annual state Operating Plan who are
determined to be in greatest need of nutrition services.
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PART II
STANDARDS FOR STATE AGENCY
Section 3 Procedures for Making Project Awards:
a. Not more than twenty percent of a State I s Title VII nutrition
program allotment for a given fiscal year, excluding that
portion necessar,y for State plan administration, shall be used
for the provision of supporting social services as prescribed in
Section 10 below. Individual project awards may not exceed this
twenty percent limitation, except in highly unusual, exceptionally
well justified cases, as approved by the State Division for the
Aging.
b. The State agency may award nutrition project funds, in the fom
of a grant or contract, in cash or in kind, to any public or
private non-profit agency, organization, institution, political
subdivision of a State, or Indian tribal organization, hereinafter
referred to as recipient of award. It is recommended that each
private grantee or contractor be incorporated in order to safe­guard
the interests of the State agency, the recipient of award,
and the individuals involved in the program.
c. To the extent feasible, the State agency must make awards to
projects, or provide for subcontracts within such awards, which
will be operated by minority recipients of awards at least in
proportion to their numbers of eligible individuals in the State.
A project will be considered to be operated b.Y minority recipients
of awards if the project award is made to an organization
primarily operated by, and primarily servL'1g the needs of,
minority individuals.
d. All applications for support under Title VII of the Older
Americans Act must be submitted to the State agency on an official
application fom prescribed in Chapter II of this booklet.
e. State agencies are responsible for assuring that all applicants
for new projects sign an Assurance of Compliance to the Civil
Rights Act of 196).j. fom before a project award is approved. The
fom must also be signed by all subcontractors prior to execution
of the subcontract.
f. Comments from the appropriate ~gional Clearinghouse Authority
(Budget Circular A-95) must accompany each application.
g. Nonnally, in approving a grant for a nutrition project, the
State agency will require that the project start on the first day
of a fiscal quarter.
h. Title VII of the Older Americans Act permits Federal support for
the expansion of existing successful programs for the elderly.
When an exist:ing program is expanded, only that portion financed
through Title VII support and the required non-Federal participa­tion
constitute a Title VII nutrition project and that portion
must comply with the regulations and the guidelines contained in
this booklet.
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Section 3 Procedures for Making Project Awards (Continued)
Criteria for approval of expanded projects
i. In approving support of the expansion of an existing program,
the State agency must be assured that:
(1) The amount of non-Federal resources expended
. for the elderly for each year in which Title
VII payments are made, is not less than the
amount expended by the recipient during the
financial year prior to the funding of the
project under Title VII. For each expanded
award, the State agency shall indicate on
the notification of nutrition project award
the amount of expenditures which the recipient
agency must maintain during the project period.
(2) Title VII funds will not be used to replace
any existing non-Federal resources.
(3) The Title VII law, regulations, and guide­lines
contained in this booklet must be met
by that portion of the expanded projects
funded with Title VII and matching funds.
Exception:
Nutrition projects initiated under Title IV of
the Older Americans Act, may receive funding
under Title VII through June 30, 1973 if they
conform to the provisions of Title VII. In
order to receive fundings under Title VII
after June 30, 1973, the project must also
conform to all additional provisions contained
in the regulations and this booklet.
j. The State agency must establish procedures that will provide
the opportunity for a hearing before the State agency for any
applicant whose application for Title VII funds is denied.
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Section 4
Section 5
Payment of Nutrition Funds to Projects
a. Payment of nutrition funds by the State agency to a
recipient of an award may be either in the fonn of an
advance or a reimbursement. Advances to recipient of
an award shall be paid on a monthly basis.
b. Before making payment to a recipient of an award, the
State agency must evaluate the project's cash require­ments
and cash balance on hand. Advance payments should
be limited to the project's cash requirements for the
month, as opposed to merely making twelve equal payments
during the budget year.
Project Suspension and Termination
a. Conditions may arise which would make suspension of
project operations desirable. Where conditions warrant
it, the State agency may suspend project operations.
b. To suspend project operations, the State agency must
notifY the recipient of an award in writing of the action
being taken, the reason for such action, and the condi­tions
of the suspension. This notice must be given prior
to the effective date of suspension and must note the
right of the recipient of an award to appeal such decision
to the State agency.
c. There can be no Federal participation in any costs accrued
by a project during a period of project suspension.
d. In suspending project operations, the State agency must
determine the amount of unearned Federal nutrition funds
the project has on hand. The anticipated length of project
suspension and the amount of the Title VII fund balance on
hand will dictate whether the State agency should require
the balance to be returned.
e. The State agency may reinstate a suspended project if it
detennines conditions warrant such action. Such reinstate­ment
will be made by issuance of a new notification of award.
f. Federal participation in project costs may resume immediately
upon reinstatement, but not for any costs accrued during the
period of suspension. The obligational authority unearned at
the time of suspension again becomes available for earning by
the project at the previously established matching ratio.
g. A project shall be considered terminated when its operations
have been suspended for more than three consecutive months in
any budget year.
h. For adequate reasons, the State agency may tenninate Federal
support of a project prior to the end of an approved project
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Section 5 Project Suspension and Termination (Continued)
period or budget year. The following are examples
of conditions under which the State agency would
normally terminate Federal support:
(1) A recipient of award violates the condition
under which the proposal was approved;
(2) Program performance is inadequate; and/or
(3) Non-Federal resources are not available.
i. To terminate a project, the State agency must notify the
recipient of the award in writing of the action being taken
prior to the effective date of termination, the reasons for
such action, and the right of the recipient of award to
appeal procedures. This notice must also specify the reports
to be completed (see j. below).
j. vfuen Federal support to a project terminates on completion
of the final approved budget year or earlier, as described
in a. above, the recipient of award must complete and sub­mit
a final Quarterly Nutrition Project Report and a
Nutrition Project Financial Report to the state agency.
(Chapters IV and V)
k. Hhen a project ceases to receive Federal funds, equipment
and supplies purchased with l'itIe VII funds must be dis­posed
of in accord with this booklet and normal State
procedures. Any funds realized from the sale of such
equipment or supplies is an adjustment in the project cost.
If property purchased with Title VU funds is to continue
to be used to further the purpose of Title VII of the
Older Americans Act, the state agency must secure a written
statement assuring this fact from the recipient of award.
Section 6 Volume Purchasing and USDA Food Assistance
a. At the request of one or more recipients of awards, the
State Section on Aging may purchase or request another
State agency to purchase conunodities including foods,
services, equipment, and supplies on the open market for
use by the requesting nutrition projects.
b. 'I'he State agency shall establish procedures for the alloca­tion
of costs among projects for items purchased upon
request. Such items may be considered in-kind resources
made as payment in lieu of funds paid to projects.
c. The State agency will work with the State Department of
Education in order to assure maximum feasible utilization of
donated foods in nutrition projects. As a minimum, the State
agency will, when a nutrition project has been given an award,
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Section 6 Volume Purchasing and USDA Food Assistance (Continued)
Section 7
inform the State Department of Education of the project I s
name, address, the location of its meal site(s) and the
anticipated number of elderly persons to be served at
each site, in order to facilitate participation in the
program by the projects.
General
a. It is the responsibility of the State S3ction on Aging
to assure that the recipients of awards under Title VII
shall be infomed of, and meet, all of the project stan­dards
prescribed in this booklet.
b. All standards set forth in Section 9, and other standards
as indicated, must be met initially upon funding of a
Title VII project. Other standards can be achieved on an
incremental basis as indicated.
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PART III
STANDARDS FOR INDIVIDUAL PROJECT OPERATIONS
Section 8 Project Administration
8.1 Pro ject Area
a. Each project must be operated within the boundaries of the
project area established in the proposal and approved by the
State agency. The designated project area must meet the
standards as set forth by the State agency and must be of
sufficient size for the economical delivery of meals, the
efficient provision of needed supporting social services, and
the coordination and linkage of project activities with related
service programs in the project area.
b. The nutrition and supporting social services made available by
the project shall seek to serve those target group eligible
individuals in greatest need throughout the project area. Such
a goal may be achieved on an incremental basis.
8.2 Project Objectives
a. Tn order to be eligible for an award, pro ject applicants must
establish measurable objectives which reflect the purposes
and standards set forth in this booklet.- Such objectives must
be related to the needs of the eligible individuals in the
project area established and must relate to:
(1) Individuals to be served, including:
(a) Persons with income below
the poverty threshold; and
(b) Other eligible individuals.
(2) Services to be provided, including the:
(a) Number and frequency of meals
to be served in congregate
settings and in home delivered
settings where appropriate.
(b) Level of supporting social
services as prescribed in
Section 10 of this booklet.
8.3 Project Scope
a. Awards shall be made only to projects that will serve an
annual average of at least one hundred meals per day five
or more days a 'Week throughout the project area. Projects
shall provide home delivered meals where necessary and
appropriate, to meet the needs of target group eligible
homebound individuals.
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b. Exceptions to a. above may be permitted for projects
operated :in sparsely populated rural areas if the need
for such exception is docmnented and on file at the
State agency. Projects in such rural areas:
(1) May serve less than one hundred
meals per day; and
(2) Must serve meals at least five
days a week at sites throughout
the project area, but not
necessarily five days a week at
each site.
c. In addition to the minimtnn scope of nutrition services
prescribed in a. and b. above, supporting social services
must be provided as set forth in Section 10 of this booklet.
Section 8.4 standards for Recipients of Awards
a. The applicant agency may be only a public or private non­profit
agency, organization, or institution, political
sub-division of a State, or Indian tribal organization,
which can danonstrate to the state agency a capacity for
the effective delivery of nutrition and supporting so cial
services throughout the project area.
b. In each project area, all target group eligible individuals
must be pemitted, and encouraged, to participate in the
nutri.tion and supporting social services offered by the
project. In no case maya project operated by specific
groups, such as churches, social organizations, homes for
the elderly, or senior housing developments, restrict
participation :in the project to its own membership, or other­wise
show discriminating preference for such membership.
c. Each recipient of award shall be responsible to the State
agency for all project activities throughout the project
area.
8.$ Project Council
a. Each recipient of an award must establish a project council
whose responsibility shall be to advise the project on all
matters relating to the delivery of nutrition and supporting
social services throughout the project area, to assist in
establishing project objectives, and to approve project
decisions as specified in e. below. If project participants,
with the concurrence of the project director, wish to
establish congregate meal site councils in addition to the
project council they may do so. Site councils are recommend­ed
for projects that cover a large geographic area and/or
have a large number of congregate meal sites.
b. Fomal procedural guidelines regarding the members, such as
method of selection, tenure, responsibilities, and reimburse­ment;
frequency of meetings; and other related c01IDcil
matters have been established by the State agency as below.
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Section 8.5 Project Council (Continued)
c. The project council must be organized and activated within
thirty days after the date that meals are first served by
the project. However, where feasible, target group eligi­ble
individuals mould be involved in the preparation of
the project proposal so that initial decisions regarding
fees, menus and site selection, will renect potential
project participants' views.
d. Council membership
(1) More than one-half of the members shall be
nutrition project participants and each
congregate meal site will elect represen­tatives
to the project cOlmcil.
(2) The remainder of the project cOlmcil members
must be broadly representative of major
public and private agencies and organiza­tions
related to aging in the project area,
local government officials, and other
persons who are lmowledgeable and experienced
in the special, including nutritional, needs
of the elderly.
e. The project cOlmcil shall have approval authority over
decisions related to the:
(1) Setting of suggested fee schedules;
(2) Approval of general types of menus that
meet the nutrition standards set forth
in Section 9 of this booklet.
(3) Days and hours of project operations;
and
(4) Decor and furnishings of the meal site(s).
f. The project cOlmcil shall advise the project in all other
matters related to the delivery of nutrition and supporting
social services by the project including:
(1) Selection of paid staff and volunteers;
(2) Preparation of the project's operating
budget;
(3) Evaluation of project effectiveness
and aChievements of objectives;
(4) Existing and proposed services offered
by the project; and
(5) New congregate meal site selection.
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Section 8.5 Project Council (Continued)
g. Decisions made in accord with e. above may vary among
congregate meal sites. However, all decisions of the
council must be in accord with all Federal and State
policies and take into consideration the project
budget.
8.6 Nutrition 'Project Personnel
a. The project must employ adequate numbers of qualified
staff to assure satisfactory conduct of the project.
Preference must be given to persons aged sixty or over
in the hiring for all staff positions, when other
qualifications are equal. Tn addition, project staff
must be, to the extent feasible, minority individuals
in numbers in proportion to minority project parti­cipants.
b. Such staff must include:
(1) Project director
The project director must be employed by,
and be responsible to the recipient of
the award, and must be empowered with
necessary authority to conduct the day­to-
day management and administrative
functions of the project. The director
must be hired on a full time basis and
meet the qualification standards as
required by the state agency.
(2) Other staff
The project design for the provision of
nutrition and supporting social services
will detennine the number and type of
additional pennanent or consultant staff
required by the project. Such required
staff includes that necessary for the
management of each congregate meal site,
fiscal and administrative management,
and clerical support. staff positions
will be required for the preparation and
delivery of foods and the provision of
supporting social services on~ when these
functions are not contracted or arranged
for through food vendors or existing
community social service resources.
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Section 8.6 Nutrition Project Personnel (Continued)
c. Volunteer staff
To the max:imum extent feasible, the project must provide
opportlll1ities for vollll1tar,y participation of individuals
in all aspects of project operations. Such opportunities
must 1;>e made available to college and high school students,
older persons, and others.
8.7 Training
a. Each project will provide for the in-service training for
all staff engaged in the implementation of the project.
Such training must be designed to enhance staff performance
as related to the specific job responsibilities of each
staff member.
b. Training for the project director shall include attendance
at training programs provided by AoA/SRS.
8.8 Plan for the Project
a. Each project must serve primarily those target group
eligible individuals designated by the state agency in the
State Plan to be in greatest need. To achieve this goal,
the applicant agency must set forth in its proposal:
(1) A proposed geographic area in which
project services will be delivered
(see Section 8.1).
(2) An identification of the numbers and
location of those target group
eligible individuals detennined to
be in greatest need, with special
emphasis on those individuals whose
incane is below the poverty threshold
established by the Bureau of the Census
and minority group individuals who may
reside in the project area; and
(3) A program design for effective~ meet­ing
the nutrition and supporting social
service needs of such individuals.
b. No project providing only home delivered meals may be funded.
However, within congregate meal projects, home delivered
meals may be provided where necessar,y and feasible. In such
cases, it is recommended that not more than ten percent of
the meals be home delivered. All congregate meals sites and
programs must:
(1) Have an individual, either volunteer
or paid staff, who is responsible for
all activities at the site;
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Section 8.8 Plan for the Project (Continued)
(2) Provide hot meals five or more days
each week, except in those sparsely
populated rural areas where a need
for an exception to this policy has
. been documented by the State agency
under Section 7.3b of this booklet.
(3) Be accessible to the target group
eligible individuals and be located
as close as possible, preferably with­in
walking distance, to concentrations
of such individuals;
(4) Be clean, neat, have adequate lighting
and ventilation, and meet all applica­ble
health, fire, safety, and sanita­tion
regulations;
(5) Have equipment, including tables and
chairs, that are sturdy and appropri­ate
for older persons. Tables should
be arranged to assure an atmosphere
appropriate for pleasant dining and
to encourage maximum socialization
among the participants. Adequate
aisle space should be provided between
tables to allow for persons with
canes or crutches to walk with ease,
and for use of wheelchairs;
(6) Provide for table settings that are
acceptable to the project council. If
disposable dinneIWare is used, it must
be of a quality that is sturdy to pre­vent
buckling and spillage, non-porous
to prevent leakage, and must be sani­tary
and attractive. Utensils, such
as forks, knives, and spoons, must like­wise
be of a quality to prevent melting,
bending, or splintering in nozmal use;
( 7) Provide for a separation between the
dining area and the food preparation
area where food is prepared and served
in the same facility;
(8) Be free of architectural barriers which
limit the participation of older persons;
(9) Be available, each day meals are served,
for a period of time adequate for all
participants to eat a leisurely meal;
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Section 8.8 Plan for the Project (Continued)
(10) To the maximum extent feasible, have
available sufficient space and time
for the provision of needed supporting
social services;
(ll) Make provision for the celebration of
. special occasions of project participants;
and
(12) Make special provisions as necessary for
the service of meals to handicapped
individuals and :individuals with limited
mobility; and
(13) Be located :in a facility 'Where all elig­ible
individuals will feel free to visit.
Selection shall take :into consideration
the type and location of the facility so
as not to offend the cultural and ethnic
preferences of the eligible :individuals
in the project area.
c. Home delivered meals may be provided by the project only 'Where
necessary and feasible to meet the needs of eligible individ­uals
'Who are homebound because of temporary or permanent
physical or mental impairment.
8.9 Fees for Nutrition Services
a. Each nutrition project shall provide the opportunity for
individuals to make a contribution for nutrition services
received. Such contributions shall be based on a suggested
fee schedule, or a flat fee, established b.Y the project. Such
suggested fees will be established after taking into
consideration:
(1) Income ranges of project participants;
and
(2) Local cost of living standards.
b. Any fee or fee schedule established, must have the approval
of the project council.
c. 'lhe payment of fees, if any, shall be determined by each
participant according to his ability to pay. Participants
may be counseled during an interview to assist them in deter­mining
the amount th ey may wish to pay, if any, using the
established schedules to arrive at a suggested fee. Parti­cipants
may choose voluntarily to contribute amounts for
meals up to the total actual costs of raw food and meal
preparation.
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Section 8.9 Fees for Nutrition Services (Continued)
d. No eligible individual shall be denied participation in the
nutrition program because of an inability to pay all or part
of the cost of the meals served. Suggested contribution fee
schedules shall in no case be used as a means test to deter­mine
the eligibility of individuals to participate in the
nutri~ion project.
e. The project must arrange for methods of receiving contrib­utions
from individuals in such a manner as not to differ­entiate
among individuals' contributions publicly.
f. Pro jects "Which provide home-delivered meals must seek to be
authorized to accept food coupons (food stamps) in lieu of
cash from homebound participants who are eligible to purchase
food coupons and who wish. to use the coupons for paying for
such meals. *App1ication for such authorization must be made
to the nearest Field Office of the Food and Nutrition Service
USDA. Because of a restriction in the Food Stamp Act of 1964,
as amended, projects thus authorized must agree not to accept
donated foods for meal preparation on behalf of homebolll1d
participants who purchase meals with food coupons. However,
donated foods may be accepted on behalf of other eligible
participants. In addition, donated foods may be combined with
other foods in preparing meals for home delivery, including
those meals to be purchased with coupons.
g. Procedures must be established by each project for the hand­ling
of monies collected to insure against loss, mishandling
or theft. Recipients of awards obliged by State or local law
to bond project staff who handle money shall do so.
8.10 Confidentiality
Each recipient of an award must assure that no personal information
obtained from an individual in conjunction with the project will
be disclosed in a form in which it is identified with him, without
written consent of the individua1(s) concerned. All project records
must be maintained in such a manner that confidentiality will not
be violated.
8.11 Project Records and Reports
a. Each nutrition project must establish and maintain a sYstem
for the collection of data that will accurately reflect project
program and financial operations.
* Food coupons cannot be accepted by the nutrition project as payment
for meals served at congregate meal sites because of restrictions in
the Food Stamp Act of 1964, as amended.
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Section 8.11 Project Records and Reports (Continued)
b. 'lhese data must be made available for state and national
eValuation efforts.
c. From these data, the recipient of an award must complete
a Quarterly Nutrition Project Report as contained in
this bookle-& as well as all reports required by the SRS.
(see Chapter IV for a Summary of Required Nutrition
Program Reports.) Such reports must be sul:rnitted promptly
when due and failure to comply may affect subsequent fund­ing
of the project.
Section 9 Nutrition standards
9.1 Meal Planning
a. 'lhe special needs of the elderly must be considered in all
menu planning, food selection, and meal preparation.
b. Meal service should be designed so that hot food is avail­able
for at least one-half hour after serving time begins
to enable individuals who may not arrive at a specific time
to participate in the hot meal.
c. Menus must be planned for a minimum of four weeks, approved
and certified in writing by the dietitian/nutritionist whose
services are utilized by the project, and submitted to the
State agency for review at least two weeks prior to the
initial use of the menu. For purposes of audit, the State
agency and the projects shall keep on file copies of the
certified menus as used, for a period of one year. Menus
must be prepared on menu forms, a copy of which is contained
at the end of this section.
d. All certified menus must be posted in a conspicuous location
in each congregate meal site as well as at each place of
food preparation. The certified menus must be adhered to
subject to seasonal availabilit,y of food items.
e. The food items within the meat, vegetable and fruit, and
dessert groups must be different for the same days of each
week, thus providing a variety of foods and nutrients.
f. Project menus must follow the meal pattem set forth below.
Each group, or its altemate, makes a special contribution
toward the objective of providing at least one balanced meal
daily.
(1) Meal or meal altemate group
'lhree ounces cooked edible portion of meat,
fish, fowl, luncheon meats, eggs, or cheese.
Meat altemates may be used occasionally for
variety and may include cooked dried beans
or peas, nuts, or nut-butter (peanut butter
and others).
-17-
Section 9.1 Meal Planning (Continued)
(2) Vegetables and fruit group
Two, one-half cup servings. All vege­tables
and full strength vegetable juices,
all fruits and full strength fruit juices•
.Note: Rice, spaghetti, macaroni
and noodles are not vege­tables.
See (3) below.
Fruit used as a dessert
should not be counted
toward the suggested two
servings of vegetables
and fruits.
(3) Bread or bread alternate group
One serving. Enriched or w:b.olegrain
bread, biscuits, muffins, rolls,
sandwich buns, cornbread and other hot
breads.
Bread alternates may include enriched or
whole-grain cereals or cereal products
such as spaghetti, macaroni, dumplings,
pancakes, and waffles.
Where available, the following additional
variation may be substituted for the bread
requirements: ufi, tanniers, yams, plain­tains,
and sweet potatoes.
(4) Butter or fortified margarine
One teaspoon
(5) Dessert group
One, one-half cup serving. All fruit, full
strenth fruit juices, and simple desserts such
as puddings, gelatins desserts, ice cream, ice
milk and sherbert; cake, pie, cookies, and
similar foods are also included.
Note: Cakes, cookies, and pie crusts
made with enriched or whole
grain flour or meal are more
nutritious than those made with
unenriched flour or meal.
-18-
section 9.1 Meal Planning (Continued)
(6) Milk group
One-half pint. Fortified whole, skim, or low fat
milk, flavored whole or fortified milk, buttermilk,
and cheese.
Note: The inability of a project to
obtain a supply of milk on a
continuing basis shall not bar
it from participating in the
program. In such cases the
state agency may approve the
service of meals without fresh
milk when an equivalent amount
of canned, whole dry, or non­fat
dry milk is used in the
preparation of the components
of the meal.
(7) Optional beverages
Coffee, tea, decaffeinated beverages, cambric tea,
soft drinks, and fruit flavored drinks may be used.
(8 )
(9)
Other foods may be added to the meal to provide
personal satisfaction and additional nutrition.
Vitamins and/or mineral supplements may not be
provided with nutrition project funds. ---
g. Where feasible and appropriate, special menus shall be avail­able
to individuals participating in the program.
(1) Special menus may be provided for health reasons.
(a) A written order will be on record
for each individual on a special
diet, and the order must be re­viewed
periodically (minimum
annually) with the pro ject
participant's physician.
(b) Special diet menus must be plan­ned
and prepared under the super­vision
of a qualified registered
dietitian.
(c) A current diet manual, approved by
the nutritionist or dietitian on
the State agency staff, will be
supplied by the State agency to
each project.
-19-
Section 9.1 Meal Pla:rming (Continued)
g. (2) Religious, ethnic, cultural, or regional dietary
requirements or preferences of a major portion of
the group of participants at a congregate meal
site shall be reflected in the meals served.
Where feasible, individual dietary needs may
also be met. However, the project is not required
to do so on an individual basis.
9.2 Food Procurement
a. All food procurement must be transacted in accord with
Sections 6 and 13 of this booklet.
b. The state agency shall, on a regular basis, make recip­ients
of awards aware of those plentiful foods designated
by the Secretary of Agriculture as being in abundance,
either nationally or locally. 'lhe state agency shall
establish procedures to assure that recipients of awards,
to the extent feasible and practical, reflect such abundant
foods in menu planning.
c. Projects participating in the USDA Food Distribution
Program in accordance with Section 9.5c of this booklet
must request donated foods sufficiently in advance to
insure delivery for use in the menus for which they
were ordered.
9.3 Food Preparation and Delivery
a. When a project is designed to serve meals at more than one
congregate meal site, (bearing in mind the number of meals
served) efforts should be made to have all meals prepared
at one facility and then delivered to the various sites.
For the most economical delivery of meals, the duplication
in staffing and equipping food preparation facilities at
more than one congregate meal site should be minimized.
(see Section 11.2b (9) of this booklet which establishes a
limit on capital asset expenditures for each project.)
b. state and local fire, health, sanitation, and safety
regulations applicable to the particular types of food
preparation and meal delivery system used by the project
must be adhered to in all stages of food service operations.
In all cases, periodic checks must be made for foreign
content in the food either by the appropriate State or local
health officials or by qualified individuals engaged by the
state agency to conduct such checks.
c. All staff working in the preparation of food shall be under
the supervision of a person who inll insure the application
of hygienic techniques and practices in food handling prepar­ation
and service. This supervisory person shall consult
with the project nutritionist/dietitian for advice and consulta­tion
as necessary.
-20-
Section 9.3 Food Preparation and Delivery (Continued)
d. Tested quality recipes, adjusted to yield the number of
servings needed, must be used to achieve the consistent
and desirable quality and quantity of meals.
e. All foods must be prepared and served in a manner to
present optimum flavor and app:m"BIlce, while retaining
nutrients and food value.
f. Home delivered meals
(1) Projects providing home delivered meals,
where necessary and feasible, may use
various methods of delivery, however,
all food preparation standards set forth
in this section must be met.
(2) More than one meal may be deliverd for
each day I S consumption, providing that
proper storage and heating facilities
are available in the home, and that the
project participant is able to consume
the second meal either by himself or
with available assistance.
9.4 Food Contributions
a. All foods contributed to the project must meet those
standards of quality, sanitation and safety that apply to
foods that are purchased commercially by the project.
b. Foods prepared or canned in the home may not be used in
meals provided by the projects financed under Title Vil.
Only commercially prepared or canned foods may be used.
9.5 USDA Food Assistance Programs
a. In every case, the state agency shall assure that recipients
of awards under Title Vil shall take such steps as necessary
to assure that the maximum number of older persons within the
project area benefit from the USDA food assistance programs
as members of households certified for such assistance under
USDA regulations. Also see Section 6 of this booklet.
b. With regard to such programs, each recipient of an award
shall:
(1) Provide the opportunity for, and assist, all
project participants who desire food coupons
or donated foods to apply for such assistance;
(2) Provide the opportunity for individuals receiving
home-delivered meals to use food coupons as their
contribution toward the cost of the meal; and
-21-
Section 9.5 USDA Food Assistance Program (Continued)
b. (3) Assure that all provisions related to the use and
handling of food coupons as prescribed by the state
and local agency authorized to operate these pro­grams,
will be met.
c. The State agency shall encourage recipients of awards
under" Tit~e VII to apply to the Department of Education for
participation as eligible institutions in the USDA Food
Distribution Program. * Foods received through this program
are not to be considered as part of the project award.
d. Recipients of awards under Title VII which receive donated
foods as institutions should consider the feasibility of
entering into written contracts with corrnnercial or insti­tutional
facilities to convert the donated foods into more
convenient or usable end-products.iH~
* Public and nonprofit private feeding programs which provide meals for
the elderly in group settings or for home delivery may qualify as
eligible institutions under USDA regulatlons for food distribution
(7 CFR Part 250). Eligibility is detennined by State distributing
agencies, which provide donated foods under written agreements with
institutions. Institutions may employ a corrnnercial kitchen, food
service management oompany, or other catering service in preparing
meals containing donated foods, provided this service is contracted
for in accordance with USDA regulations for food distribution.
-l~ Procedures for such food processing contracts may be obtained from
the State Department of Education.
-22-
~liUJl:l,; I IVlI:NU t'l...Ai\l - I~U I tilIIU" ·>'\UI.l:\~IVI rvti I nl: l:L.LJl:tiL. r ,------...."
,';::::,);,RED BY
-
MONTH, DATE, DAY
MEAT OR ALTERNATE
3 OZ. COOKED EDIBLE
PORTION .
VEGETABLES & FRUITS
2,1/2 CUP SERVINGS --------------------_. ._-------------------_. ----------------------- ----------------------- ----------------------
rI - j i
BREAD OR ALTERNATE
1 SERVING
I
BUTIER OR FORTIFIED
MARGARINE
1 TEASPOON , .
i
DESSERT
1/2 CUP
,
MILK
1/2 PINT
; BEVERAGE (OPTIONAL)
i
~ ... -_.__ ..._- _.L-..___
\ 'J. 0 r CCN~" :::'GATE MeALS .. _ PROJECT TITLE
~n, OF HO\~c DELIVERED MEALS PROJECT SITE _
PROJECT DIRECTOR _
DATE . .
Di ETITi Ai-,JNUTR IT\O~~IST
-.-~_._--- ~-_ .._--- - ._-- ~ -------- - -._._- ~ ..- - -~,---~------_.-
Section 10 Supporting Social Services
10.1 General.
a. Project participants should be interviewed by a staff person
within two weeks after they have become active in the project
to obtain certain infonnation for the project files. Such
information shall include the participant I s name, address,
telephone number, person to notify in an emergency, doctor's
name, physical problems the project staff should be aware of,
and any other pertinent infonnation needed by the project.
In addi.tion, during this interview, a detennination shall be
made as to the supporting social services that the project
participant needs.
b. In order to assure that the maximum of hard-to-reach, isolated,
and withdrawn eligible individuals throughout the project area
have the opportunity to participate in the project, recipients
of awards must provide for an ongoing vutreach service to be
provided from each congregate meal site.
c. Recipients of awards must, in addition to outreach, provide
additional supporting services to the extent that such ser­vices
are needed and are not already available and accessible
to the individuals participating in the nutrition project,
both at congregate meal settings and through home delivered
meals. During the initial interview with the project parti­cipant
a determination should be made as to the supporting
social services that the project participant needs. Such ser­vices
may include:
(1) Transportation of individuals and personal
escort services to and from the congregate
meal sites;
(2) Infonnation and referral services;
(3) Health and lvelfare counseling services;
(4) Nutrition education;
(5) Shopping assistance; and
(6) Recreation activities incidental to the
project.
d. Normally, not more than twenty percent of the Title VII Federal
funds shall be used for the provision of the supporting social
services prescribed in b. and c. above, and only these services
may be supported with Title VII funds.
-24-
Section 10.1 General (Continued)
e. Outreach, transportation, and escort services must be in
place and ready to operate prior to the actual deliver,y of
nutrition services. The supporting social services pre­scribed
in c. above, must be developed within thirty days
after nutrition services have been initiated.
f. other'social services, such as those provided for by
Titles I and XYI, of the Social Security Act, may be made
available to the project participants; however, only those
listed in Sections b. and c. above may be provided for
through Title VII funds.
10.2 Supporting Social Services Standards
a. For the purpose of this progrC'.Jll, all supporting social
services financed with Title VII funds must meet the
standards listed below. In every case, the outreach,
transportation, and escort services provided as part
of the project, whether or not financed with Title VII
funds, must also meet these standards.
b. Supporting social services standards including the
following:
(1) Outreach
(a) Outreach service means an activity
designed to seek out and identif.y,
on an ongoing basis, the maximum
number of the hard-to-reach, iso­lated
and withdrawn target group
eligible individuals throughout the
project area in greatest need of
nutrition and supporting social
services, and to provide the oppor­ttmity
for them to participate in
the project.
(b) Such services must provide for:
(1) the designation of a project
staff person to be responsible for
the conduct of this activity from
each congregate meal site; (ii)
adequate numbers of outreach workers
knowledgeable in dealing with and
identif.ying needs of older persons;
(iii) the use of a variety of methods
that will assure a systematic cover­age
of' the project area and contact
with the maximum possible number of
older persons; and (iv) arranging
for referral and follow-up of individ­uals
fotmd to be in need of services.
-25-
Section 10.2 SUpporting Social Services Standards (Continued)
(2) Transportation service
(a) Transportation service means an
activity designed to transport
older persons to and from congre­gate
meal sites so that the nutri-
.tion and supporting services will
be access ible to those target group
eligible individuals living wi.thin
the project area who, because of a
lack of mobility, would otherwise
be unable to participate in the
nutrition project.
(b) Such service must provide for:
(i) the designation of a project
staff person to be responsible for
the conduct of this activity; (ii)
regular scheduling and routing design­ed
to assure that those individuals
in greatest need of transportation
receive the services; and (iii) the
assurance that all modes of transpor­tation
provided are safe, adapted to
the special needs of older persons,
and comply with all State and local
regulations pertaining to such service.
(3) Escort Service
(a) Escort service means an activity design­ed
to assist the maximum number of
target group eligible individuals who
are physically or mentally handicapped
and require personal assistance and
special modes of transportation in
order to participate in the nutrition
project.
(b) SUch service must provide for:
(i) the designation of a project staff
person to be responsible for the conduct
of this activity; (ii) adequate numbers
of escort workers knowledgeable in deal­ing
with and assisting older persons;
and (iii) the assurance that the service
is provided regularly to those who need
it in order to participate in the nutri­tion
project.
-26-
Section 10.2 Supporting Social Services Standards (Continued)
(4) Information and Referral Service
(a) Information and referral service means
an activity designed to provide the
target group eligible individuals with
current information of referral to, all
appropriate services to meet their needs.
(b) Such service must provide for:
(i) adequate staff knowledgeable and
skilled in dealing with, and assessing
the needs of older persons, and assisting
such persons obtain needed services; (ii)
the service to be accessible to older
persons, either by phone or person-to­person
contact at the congregate meal
sites; (iii) follow-up on the referrals
made; and (iv) adequate record-keeping
concerning requests for assistance, ser­vices
rendered, and referrals made.
(5) Health and Welfare Counseling Service
(a)
(b)
Health and welfare counseling means an
activity designed to assure that project
participants have available a service
which will assist them in dealing with
the problems and stresses which interfere
with normal health and social functioning
through person-to-person assistance by
trained counselors.
Such services must provide for:
(i) adequate staff trained and skilled in
counseling older persons; (ii) the
counseling to be done in a setting that
provides privacy for the older person
seeking assistance; (iii) the service to
be available regularly and at times
convenient to project participants; and
(iv) the maintenance of adequate records
concerning the request for assistance and
the service rendered.
(6) Recreation Activity
(a) Recreation means those activities designed
to foster the health and social well-being
of project participants through social inter­action
and the satisfying use of free time.
-27-
Section 10.2 Supporting Social Services Standards (Continued)
(b) Such activities must provide for:
(i) the provision of those activities
which reflect the preferences of the
majority of the project participants;
and (ii) the availability of adequate
space and supplies necessary for the
. effective conduct of the activity.
(7) Nutrition Education
(a ) Nutrition education means a formal
program of regularly scheduled meetings
to make available facts about the kinds
and amounts of foods that are required
to meet one I s daily nutritional needs.
It shall be an accompanying feature of
the meal program, with close coordination
between the two components to improve
the nutritional intake of older persons
through better eating habits by making
them aware of the relative nutritional
value of different food groups.
(b) Such activity must provide for:
(i) visual infonnation to be available
on a continuing basis; and (ii) regularly
scheduled meetings conducted in an
appropriate manner to meet the needs of
the participants.
(8) Shopping Assistance
(a) Shopping assistance means making help
available to project participants in
getting to-and-from food markets and
in the selection of proper food items
so as to improve their nutritional
intake.
(b) Such activity must provide for:
(i) the service to be regularly avail­able;
(ii) the service to be available
at a time convenient to older persons;
and (iii) the opportunity to shop at a
food maIket of the individuals choice.
10.3 Utilization of Existing Resources
a. To the maximum extent feasible, the project shall make ever.!
effort to utilize the existing social service resources pro­vided
by agencies such as health and mental health, public
assistance, medicaid, social services, rehabilitation,
-28-
Section 10.3 Utilization of Existing Resources (Continued)
education, economic opportunity, legal services, food and
agriculture agencies, and Title III Community Projects, to
provide the supporting social services prescribed in
Sections 10.1 and 10.2 above
b. Such efforts shall include joint planning, sharing of infor­mation,
and negotiation of agreements for joint funding and
operation of programs for the elderly. 'lhese efforts shall
be coordinated with State agency acitivities on behalf of
the aging.
c. All supporting social services provided by the project shall
be interrelated and coordinated with each other to assure
maximum benefit to individuals needing such services. SUch
services shall also be coordinated vdth all other related
social services throughout the project area to assure maximum
benefit to individuals needing such services. SUch services
shall also be coordinated with all other related social
services throughout the project area to assure maximum access
to and utilization by project participants.
11 Project Costs Policy
11.1 Principles for Determining Costs
a. General
Cost determination for those activities undertaken by
the state agency under Section 705 of the Older Americans
Act must be in conformance vdth the principles and stan­dards
set forth in IlA Guide for State Government Agencies
Establishing Cost Allocation Plans and Indirect Cost
Rates for Grants and Contracts with the Department of
Health, Education, and Welfare. 11 (U.S. DREW OASC-6)
The major provisions of this IlGuide ll as well as other
policies concerning the allowability of costs are contain­ed
in this section.
b. Factors affecting allowable costs
To be allowable under Section 705 of the Older Americans
Act, all costs must meet the following general require­ments:
(1) Be necessary and reasonable for the proper
and efficient conduct of Title VII nutri­tion
projects;
(2) Conform to any limitations or exclusions
set forth in this booklet, Federal laws,
or other governing limitations as to types
or amounts of cost items;
-29-
Section 11.1 Principles for Determining Costs (Continued)
(3) Be accorded consistent treatment through
application of generally accepted accounting
principles appropriate to the circumstances;
(4) Not be allocable to or included as a cost of
any other federally financed program in either
. the current or a prior period; and
(5) Be net of all applicable credits to the cost.
(a) Applicable credits refer to those
receipts or reductions of expendi­ture
type transactions which reduce
or offset expense items allocable to
an activity as a direct or indirect
cost. Examples of such transactions
are: Purchase discounts; rebates or
allowances; recoveries or indemnities
on losses; sale of publication or
equipment; certain types of income
(see section ll.lf) and adjustments
of overpayments or erroneous changes.
(b) Applicable credits may also arise when
Feder8~ funds are received or are avail­able
from sources other than the Title
VII program to finance operations on
capital items of the recipient of award.
This includes costs arising from the use
or depreciation of items donated or
financed by the Federal goverrunent to
fulfill matching requirements under
another grant program. These types of
credits should likewise be used to
reduce related expenditures in deter­mining
the rates or amounts applicable
to Title VII projects.
c. Composition of Costs
(1) Total cost
The total cost is comprised of the allowable direct
costs incident to the conduct of Title VII project
activities plus the allocable portion of any allow­able
indirect costs, less applicable credits.
(2) Classification of costs
There is no universal rule for classifying certain
costs as either direct or indirect under ever,y account­ing
system. A cost may be direct with respect to some
specific function or service, but indirect with respect
to the activity or other cost objective. It is impor­tant,
therefore, that each item of cost be treated con­sistently
either as a direct or indirect cost. Specific
-30-
Section 11.1 Principles for Deter.mining Costs (Continued)
guidelines for detenn:in:ing direct and indirect
costs allocable under Title VII nutrition pro­jects
are provided in the Section ll.ld and e
which follow.
d. Direct Costs
Direct costs are those that can be identified specifically
with project operations.
e. Indirect Costs
(1) Indirect costs are those which cannot be
attributed specifically to the project, but
which are generated by the project as well
as by other programs administered by the
recipient of award. Examples of indirect
costs are:
(a) General and adm:inistrative expenses
of the overall recipient of award
organization;
(b) Operation and ma:intenance of build­:
ings and equipment, such as telephone
switchboard expenses, by the overall
recipient of award organization; and
(c) Departmental administration, such as
centralized payroll and accounting
services.
(2) If a Title VII project is the only program
activity in which the recipient of award is
engaged, the project could incur no indirect
costs. ---
(3) Jh theory, all such costs might be charged direct­ly;
however, practical difficulties preclude such
an approach. 1herefore, the DHEW provides for
reimbursement of these costs through the mechanism
of an indirect cost rate. An indirect cost rate is
simply a device for~tennining fairly and convenient­ly,
within the bOl.mdaries of sound administrative
pr:inciples, what proportion of such general expenses
each program should bear. Specifically, it is the
ratio between the total indirect expenses and some
direct cost base, commonly either direct salaries
and wages or total direct costs. The indirect cost
rate is therefore the end product of a series of
cost apporti onments which distribute costs jointly
benefiting two or more programs :in some reasonable
relation to the benefits derived.
-31-
Section 11.1 Principles for Determining Cost (Continued)
(4) In those instances where the IHEW has negoti­ated
an indirect cost rate with an agency or
institution which also is a recipient of award
under Title VII, the State agency may rely on
the conditions of the agreement which establish­ed
the rate. Such reliance must be limited to
> the extent that the agreement applies to the
Title VII project.
(5) In those cases in which there is no existing
indirect cost rate which has been negotiated
between the recipient of award and the DREW,
an indirect cost rate plan may be developed.
If the recipient of award is a local public
agency, this indirect cost rate must be
negotJ.ated directly with the DREW in accord
with the Off'ice of Management and Budget
Circular A-87 and the "Guide for Local
Government Agencies Establishing Cost Allo­cation
Plans and Indirect Cost Rates for
Grants or Contracts with the Federal Govern­ment."
If the recipient of award is other
than a local public agency, it may negotiate
an indirect cost rate with the state agency,
which will seek approval from IHEW.
(6) The basis to be used by the project in
detennining the amount of indirect cost
claimed shall be set forth in the notifica­tion
of award.
(7) Indirect costs incurred by other organizations
in support of project activities are al~owable
only if the project is charged for, and pays
for, the service provided by the af'fil~ated
institution. (If such costs are "in-kind"
the recipient of award would not "pay" for them).
f. Project income (credits)
(1) All project income must be accounted for.
(Income accrued by individuals participating in
a project or by groups using project facilities
is not considered project income)
(2) Royalties received from copyr~hts and patents
dur:L"lg the project period shall be retained by
the recipient 01' award and, in accordance with
the award agreement, be either added to the funds
already conunitted to the program or deducted from
total pro ject costs for the purpose or detennining
the net cost on which the Federal share or costs
will be based. After termination or completion
-32-
Section 11.1 Principles for Determining Cost (Continued)
of the grant, the Federal share of royalties m
excess 01- $200 received annually shall be returned
to the SRS in the absence of other specific
agreements between the SRS and the State agency.
The Federal share of royalties shall be computed
on the same ratio basis as the Federal share of the
-total project cost.
0) Public agency recipients of awards must record the
receipt and expenditure of revenues (such as taxes,
special assesments, levies, fines, etc.) as a part
of project transactions when revenues are specifically
eannarked for a project in accordance with awaro.
agreem.ents.
(4) All other anticipated project income, including
contributions for meals, to be earned during the
project period shall be retained by the recipient
of award. The Federal share of such income must be
awarded to the project on a notification of award
form. .An estimate of income to be accrued should be
made prior to the budget year, and be included in the
original project budget for initial award by the State
agency. In such cases over estimates of project income
will reduce the project budget and may require a supple­mental
award. Underestimates will provide a surplus
for the project which may be carried forward to a
subsequent year.
11.2 Allowable Project Costs
a. General
'!he standards listed below are set forth to assist the applicant
to detennine the allowability of selected items of cost for the
conduct of nutrition projects. These standards will apply irres­pective
of whether a particular item. of cost is treated as direct
or indirect cost. Failure to mention a particular item. of cost
is not intended to imply that it is either allowable or unallow­able;
rather, determination of a110wability in each case will
be based on the standards provided for similar or related items
of cost.
b. Allowab1eCosts
(1) Accounting
The cost of establishing and maintaining accounting
and other information systems required for the
management of the project is allowable. This includes
costs incurred by central service agencies for these
purposes. The cost of maintaining central accounting
records required for overall local government pur­poses,
such as appropriation and fund accounts by the
Treasurer, Comptroller or similar officials, is con­sidered
to be a general expense of government and is
not allowable.
-33-
Section 11.2 Allowable Project Costs (Continued)
(2) Advertising
Advertising media include newspapers magazines,
radio and television programs, direct mail, and
trade papers. 'lhe advertising costs allol-Table
are those which are solely for:
(a) Recruitment of personnel required
for the project;
(b) Solicitation of bids for the pro­curement
of goods and services
required;
(c) Disposal of scrap or surplus mater­ials
acquired in the performance of
the award agreement; and
(d) Other purposes specifically provided
for in the award agreement.
(3) Audit service
The cost of audits necessar,y for the administration
and management of the project is allowable.
(4) Automatic data processing
The cost of data processing services to projects is
allowable. This cost m~ include rental of equipment
or depreciation on equipment owed by the recipient
of award. The acquisition of equipment, whether by
outright purchase, rental-purchase agreement, or
other method of purchase, is allowable only upon
specific prior approval of the SRS.
(5) Bonding
Cost of premiums on bands covering employees who
handle project funds are allowable.
(6) Budgeting
Costs incurred for the development, preparation,
presentation, and execution of budgets are allow­able.
Costs for services of a central local budget
office are generally not allowable since these are
costs of general goverrunent. However, where employees
of the central budget office actively participate in
the recipient of award agency I s budget process, the
cost of identifiable services is allowable.
-34-
Section 11.2 Allowable Project Costs (Continued)
( 7) Building lease management
The administrative cost for lease management
which includes review of lease proposals,
maintenance of a list of available property
for lease, and related activities, is allowable.
(8) Building and space and related facilities
'!he cost of space in privately or publicl:r owned
buildings used for benefit of the project is
allowable subject to the conditions stated below.
The total cost of space, whether in a pr.i.vately
or publicly owned building, may not exceed the
rental cost of comparable space and facilities in
a privately owned building in the same locality.
The cost of space procured for project usage may
not be charged to the project for periods of non­occupancy.
(a) Rental cost. The rental cost of space
in a privately owned building is allow­able.
A rental cost for idle or excess
facilities, or a rental cost for land,
separate from the cost of a facility,
is not allowable.
(b) Maintenance and operation. The costs of
utilities, insurance, securit.1, jani­torial
services, elevator service, up­keep
of grounds, nonnal repairs and
alterations and the like, are allowable
to the extent that they are not other­wise
included in rental or other charges
for space.
(c) Depreciation and use allol-lances on build...
ings owned by the recipient of award or
loaned for use in the project. These
costs are allow·able as provided in
Section 1l.2b (14) below.
(d) Occupancy of space under rental-purchase
or lease with option-to-purchase agreement.
The cost of space procured under such
arrangements is allowable only when speci­fically
approved by the SRS.
-35-
Section 11.2 Allowable Project Costs (Continued)
(9) Capital Expenditures (Facilities and Equipment)
(a) The costs of capital assets including land,
building, and equipment* are allowable up
to ten percent of the total cost of the
project for the budget year when specifically
approved by the State agency. When there is
no reasonable substitute for the purchase of
capital assets in excess of ten percent of the
project budget, an exception can be made by the
SRS. Repairs, improvements and renovations
which increase the value or use of a capital
asset are allowable up to five percent of the
total project budget. Exception to the five
percent limitation can be approved by the SRS
where there is no reasonable alternative to
such capital expenditures.
(b) The limit on purchase and renovation of capital
assets is established to encourage the project
applicant to conduct cost analysis of the various
options available in the delivery of nutrition
and supporting social services. The type of physi­cal
facility and equipment needed will depend upon
the method of delivery, such as on-site food prepara­
·tion versus purchase of prepared food from vendors,
or the provision of social services at a central
site versus transporting project participants to
several service sites. Long term cost benefits
derived from the various options must be calculated
to determine the most economical and feasible
method of capital investment.
( c ) When an asset acquired with Title VII funds is
(1) sold, (2) no longer available for use in the
project, or (3) used for purposes not authorized by
the award and has a residual market value of $500
or more, then Federal government equity in the assets
must be refunded in the same proportion as Federal
participation in its cost.
(10) Central store
The cost of maintaining and operating a central
organization for supplies, equipment, and materials
used either directly or indirectly for Title VII
project activities is allowable.
~l- Capital asset equipment is defined as equipment valued at $100 or more per
item.
-36-
Section 11.2 Allowable Project Costs (Continued)
(11) Communications
(a) Communications and Utilities
Communications costs incurred for
telephone calls or services, tele­graphs,
teletype service, wide area
telephone service (WATS), centrex,
telepak (tie lines), postage, messen­ger
service and similar expenses are
allowable.
(b) Utilities
The cost of water, heat, gas and
electricity, lihere such costs are
not included in rent, are allowable.
(12) Compensation for Personal Services
(a) General
Compensation for personal services
including all remuneration, paid
currently or accrued, for services
rendered during the period of perfor­mance
under the award agreement,
including but not necessarily limited
to wages, salaries, and supplementary
compensation is allowable to the extent
that total compensation for individual
employees: (i) is reasonable for the
service rendered; (ii) follows an
appointment made :in accordance with
State or local government laws and
rules where applicable; and (iii) is
detennined and supported as provided
herein.
(b) Reasonableness of Compensation
Compensation for employees engaged in
project activities will be considered
reasonable to the extent that it is
consistent with that paid for similar
work in other activities of the recipient.
In cases where the kinds of employees
required for the project activities of
the recipient of award are not found in
the other activities of the project, com­pensation
'Will be considered reasonable to
the extent that it is comparable to that
paid for similar work :in the labor market
-37-
Section 11.2 Allowable Project Costs (Continued)
in which the employing agency competes for
the kinds of employees involved. Compensa­tion
surveys, providing data representative
of the labor market involved, will be an
acceptable basis for evaluating reasonable­ness.
(c) Payroll and distribution of time
Amounts charged to the project for personal
services, regardless of whether treated as
direct or indirect costs will be based on
payrolls documented and approved in accord­ance
with generally accepted practice of the
recipient of award. Payroll must be support­ed
by time and attendance or equivalent
records for individual employees. Salaries
and wages of employees chargeable to more than
one program of the recipient of award or
other cost objectives will be supported by
appropriate time distribution records. The
method used should produce an equitable dis­tribution
of' time and effort.
(d) Consultants
Reasonable and necessary consultant costs for
essential services that cannot be provided by
persons receiving salary support under the
award, in accordance with State policies, may
be claimed, however, consultant fees may not
be paid to U. S. government employees.
(13) Council of the project
Cost incurred by the project in obtaining assistance from
the project council including council member out-of-pocket
expenditures, in accordance with the regulations and this
booklet.
(14) Depreciation and use allowance
(a) Recipients of award may claim costs for the
use of buildings, capital improvements, and
equipment through depreciation. However, a
combination of the two methods may not be
used in connnection with a single class of
fixed assets, owned by a single contributor.
(Fixed assets are buildings and equipment.)
-38-
Section 11.2 Allowable Project Costs (ContL~ued)
(b) The computation of depreciation or use
allowance will be based on the most
recent acquistion cost.* Where actual
cost records have not been maintained,
a reasonable estimate of this acquisi­tion
cost m~ be used in the computation.
This computation must exclude the cost
of land. Depreciation or a use allow­ance
on idle or excess facilities is
not allowable. The cost of any portion
of the cost of buildings or equipment
donated or borne directly or indirectly
by the Federal government, irrespective
of where title was originally vested or
where it presently resides, may not be
claimed except as provided in Section
12.2d of this booklet.
(c) Where the depreciation method is
followed, adequate property records
must be maintained, and any generally
accepted method of computing deprecia­tion
must be consistently applied for
any specific asset or class of assets
owned by a single contributor. An
owner m~ not alter any depreciation
method used prior to Federal support,
except when applYing "use allowance"
computations to fully depreciated items
(see (e) below).
(d) Use allowances, in lieu of deprecia­tion,
may be used to value buildings,
capital improvements, and equipment.
'!he use allowance for buildings and
improvements may be computed at an
annual rate not exceeding two percent
of the most recent acquisition cost.
The use allowance for, equipment (ex-cluding
items properly capitalized as building
cost) will be computed at an annual
rate not exceeding six and two-thirds
percent of acquisition cost of usable
equipment. '!hese use allowances may
be used indefinitely, as long as the
building, improvement, or equipment
has economic usefulness.
* If an item of property was acquired with no cost to the present owner,
i.e., it was donated, computation would be based on the donor's cost
less depreciation or the current market price of similar property,
whichever is less.
-39-
Section 11.2 Allowable Project Costs (Continued)
(e) A usage value may be claimed for an asset
which is considered fulJ.vr' depreciated
(under the method described in (c) pre­ceding
page) but which still has economic
usefulness to the project (i.e., residual
value). 11'1i8 value must be claimed in
accordance with the use allowance computa­tion
as described in (d) preceding page.
All buildings must be valued by a single
method and each class of equipment valued
by a single method, either depreciation
of use allowance.
(15) Disbursing Service
The cost of disbursing project funds by the treasurer
or other designated officer is allowable. Disbursing
services cover the processing of checks or warrants,
from preparation to redemption, including the necessary
records of accountability and reconciliation of such
records with related cash accounts.
(16) Employee Fringe Benefits
Costs identified below are allowable to the extent that
total compensation for employees is reasonable, as
defined in Section 11.2b(12)(b).
(a) Elnployee benefits in the fom of a
regular compensation paid to employ­ees
during periods of authorized
absences from the job, such as for
annual leave, sick leave, court leave,
military leave, and the like, are
allowable if they are provided pursuant
to an approved leave system; and the
cost thereof is equitably allocated to
the project and to other activities.
(b) Elnployee benefits in the fom of employ­er's
contribution or expenses for social
security, employees I life and health
:insurance plans, unemployment insurance,
. workman I s compensation insurance, pension
plans, severance pay, and the like, are
allowable provided such benefits are
granted under approved plans and are
distributed equitably to the project and
to other activities.
-1+0-
Section 11.2 Allowable Project Costs (Continued)
(17) Employee 1{orale, Health, and Welfare Costs
The cost of health or first-aid clinics
and/or infirmaries, recreational facilities,
employees' counseling services, employee
'information publications, and any related
expenses incurred in accordance with general
State policy, are allowable. Income gener­ated
from any of these activities will be
offset against expenses.
(18) E:xhibits
Costs of exhibits relating specifically to
the project are allowable.
(19) Insurance
(a) Costs of insurance required, or approved
and maintained pursuant to project activi­ties,
are allowable.
(b) Cos ts of insurance in conue ction with the
general conduct of activities are allow­able
subject ot the following limitations:
(i) Types and extent and cost of
coverage will be in accordance
with general policy of the
recipient of award and sotmd
business practice.
(ii) Costs of insurance or of con­tributions
to any reserve cov­ering
the risk of, loss of, or
damage to, Federal government
property are unallowable except
to the extent that the SRS has
specifically required or approved
such costs.
(c) Contributions to a reserve for a self­insurance
program approved by the State
agency are allowable to the extent that the
type of coverage, extent of coverage, rates,
and premiums would have been allowed had
insurance been purchased to cover the risk.
-41-
Section 11.2 Allowable Project Costs (Continued)
(20) Legal expenses
'!he cost of legal expenses required :in the adm:inis­tration
of projects is allowable. legal services
furnished by the chief legal officer of the recip-
'ient of awani organization or his staff solely for
the purpose of discharg:ing his general responsibil­ities
as legal officer, beyond project operations,
are not allowable. Legal expenses for the prosecu­tion
of claims aga:inst the Federal government are
unallowable.
(21) Ma:intenance and Repair
Costs :incurred for necessary ma:intenance, repair,
or upkeep of property which neither add to the
pennanent value of the property nor appreciably
prolong its :intended life, but keep it :in an effi­cient
operat:ing condition are allowable.
(22) Management Studies
The cost of management studies to improve the
effectiveness and efficiency for on-going pro­grams
is allm-ro.ble only when authorized by SRS.
(23) l1aterials and Supplies and Equipment
The cost of materials and supplies and non-capital
asset equipment (equipment cost:ing less than $100)
necessary to carry out the project is allowable.
Purchases made specifically for the project should
be charged thereto at their actual prices after
deduct:ing all cash discounts, trade discounts, tax
discounts, rebates and allowances. Withdrawal
from general stores or stockrooms should be charged
at cost under any recognized method of pric:ing,
consistently applied. Incoming transportation
charges are a proper part of material cost. '!be
cost of ma:inta:ining and operat:ing a central stores
(purchasing) organization for supplies and materials
used either directly or :indirectly for project
programs is allowable.
(24) Memberships, Subscriptions and Professional Activities
(a) The cost of membership :in civic, business,
technical and professional organizations
is allowable provided: (i) the benefit
from the membership is related to the pro­ject;
(ii) the expenditure is for agency
membership; (iii) the cost of the member­ship
is reasonably related to the value
-42-
Section 11.2 Allowable Project Costs (Continued)
of the services or benefits received;
and (iv) the expenditure is not for
membership in an organization which
devotes a substantial part of its
activities to influencing legislation.
(b) The cost of books and subscriptions to
civic, business, professional, and
technical periodicals is allowable
when related to the project.
(c) Meetings and conferences. Costs are
allowable vThen the primary purpose of
the meeting is the dissanina.tion of
technical information relating to the
project and they are consistent with
regular practices followed for other
(non-Title VII) activities of the
recipient of award.
(25) Motor pools
The cost of a service organization which provides auto­mobiles
to the project at a mileage or fixed rate and/or
provides vehicle maintenance, inspection and repair ser­vices
is allowable.
(26) Payroll Preparation
The cost of preparing payrolls and maintaining necessary
related wage records is allowable.
(27) Personnel administration
Costs for the recruitment, examination, certi.f'ication
training, establishment of pay standards and related
activities for the project are allowable.
(28) Printing and Reproduction
Costs for printing and reproduction services necessary
for informational literature are allowable. Publica­tion
costs of reports of other media relating to pro­ject
accomplishments or results are allowable when
provided for in the award.
(29) Procurement Service
The cost of procurement service, including solicitation
of bids, preparation and awaro of contracts, and all
phases of contract administration in providing goods,
facilities and services for the project is allowable.
-43-
Section 11.2 Allowable Project Costs (Continued)
(30) Professional Services
Cost of professional services by individuals
or organizations not a part of the project is
allowable when for essential services that
, cannot be provided by persons receiving salary
support under the Title VII program. However,
consultant fees may not be paid to U. S. gov­ernmatt
employees. See Section 13 for other
specific policies on purchase of goods and
services.
(31) Taxes
In general, taxes or payments in lieu of taxes
which the recipient of award agency is legally
required to pay are allowable.
(32) Training and Education
The cost of in-service training customarily
provided, which directly or indirectly bene­fits
the project is allowable. Out-of-service
training involving extended periods of time is
allowable only When specifically authorized by
the State agency.
(33) Transportation
Costs incurred for freight, cartage, express,
postage and other transportation costs relating
either to goods purchased, delivered, or moved
from one location to another, are allowable.
(34) Travel
(a) Travel costs are allowable for expenses
for transportation, lodging, subsistence,
and related items incurred by employees,
'Who are in travel status on official
business incident to the project. Such
costs may be charged on an actual basis,
on a per diem or mileage basis in lieu
of actual costs incurred, or on a com­bination
of the two, provided the method
used is applied to an entire trip, and
results in charges consistent with those
normally allowed in like circumstances
in other recipient of award sponsored
activities. The difference in cost
between first class air accommodations
-44-
Section 11.2 Allowable Project Costs (Continued)
and less-than-first-class air accommo­dations
is unallowable except when less­than-
first-class air accommodations are
not reasonably available. Cost for
travel in privately owned automobiles is
limited to lO¢ per mile in accordance
with State policy.
(b) Foreign travel is not allowable without
the specific written approval of SRS.
11.3 Unallowable Costs
a. Bad debts
Any losses arising from uncollectable accounts and other
claims, and related costs, are unallowable.
b. Contingencies
Contributions to a contingency reserve or any similar
provisions for unforeseen events are unallowable.
c. Contributions and Donations
Contributions and donations are unallowable.
d. Construction
Costs of construction other than for minor alterations and
repairs are unallowable. See Section 11.2b (9) and (21).
Entertaimnent
e. Costs of amusements, social activities, and incidental
costs relating hereto, such as meals, beverages, lodgings,
rentals, transportation, and gratuities, are unallowable,
except when provided as specific service to older people.
f. Fines and Penalties
Costs resulting from violations of, or failure to comply
with, Federal, State and local laws and regulations are
unallowable.
g. Interest and other Financial Costs
Interest on borrowing (however represented), bond discounts,
cost of financial and refinancing operations, and legal and
professional fees paid in connection therewith, are unallow­able.
-45-
Section 11.3 Unallowable Costs (Continued)
h. Legislative Expenses
Salaries and other expenses of local govemrnental bodies
such as county supervisors, city comcils, school boards,
etc., whether incurred for purposes of legislation or
executive direction, are mallowa-ble unless such body is
the actual recipient of award; and then only those costs
are allowable which are directly related to the project
and are separate and distinct from the overall functions
of local government.
i. Losses
Actual losses which could have been covered by permissi­ble
insurance (through an approved self-insurance program
or otherwise) are mallowable. Neither AoA/SRS nor the
State agency will indemnify the project against liabilities
to third persons and other losses not compensated by insur­ance
or otherwise. However, costs incurred because of
losses not covered under nominal deductible insurance
coverage provided in keeping with sound management prac­tice,
and minor losses not covered by insurance such as
spoilage, breakage, and disappearance of small hand
tools which occur in the ordinary course of operations,
m~ be allowable.
j. l2q>enses of the Chief Executive Officer
The salaries and expenses of the chief executive of a
political sub-division are considered a cost of general
local government and are mallovmble unless this office
is the actual recipient of award; and Wen only those
costs are allowable which are directly related to the
project and are separate and distinct from the overall
executive functions of the local government.
k. Motion picture films
Project recipients of awards may not use Title VII funds
to produce motion picture films for viewing by the general
public (such as for broadcast on public or educational
television, showing to civic associations, or showing in
public places) without prior clearance with the SRS.*
However, films intended for viewing only by restricted
audiences in comection with the project may be produced.
"* As the SRS must clear any such requests with DHEW, projects should sul::mit
requests to produce films well in advance of the production date.
-46-
section 12 Cost Sh~ing Requirements
12.1 Matching Requirements
a. Non-Federal, state and/or local funds must make up at
least ten percent of the total allowable costs for
nutrition projects.
b. Federal and non-Federal resources used to meet a pro­ject's
net cost are commingled, i.e., each allowable
project cost has a Federal and non-Federal share.
12.2 Non-Federal Resources
a. Non-Federal participation may be in the fonn of either
cash or in-kind resources. Non-Federal, state and/or
local resources contributed toward allowable net project
costs may be used to earn Federal funds subject to the
conditions set forth in this section. However, resources
donated to the recipient of award may not be considered
as non-Federal participation when such resources, either
cash or in-kind, revert to the donor's facility or use.
b. Contributed resources which are eannarked for a parti­cular
individual or for members of a particular organi­zation
or sect may not be considered as non-Federal
matching funds.
c. Only when specifically authorized by this booklet or
Federal legislation, Federal funds received from other
sources may be considered as non-Federal contributions.
See Section l2.2e. (3) and (4). Cash contributions
represent the recipient of award I s outlay, including the
outlay of money contributed to the recipient of award by
public agencies and institutions, and private organizations
and individuals.
d. In-Kind Resources
(1) In-kind contributions represent the value of
non-cash contributions provided by (a) the
recipient of award, (b) other public agencies
and institutions, and (c) other private organi­zations
and individuals. In-kind contributions
may consist of charges for real property and
equipment, and the value of goods (such as food)
and services, including staff time contributed
by the State and local agencies, that directly
benefit and are identified with nutrition project
activities. Only 'When authorized by Federal legis­lation,
property purchased with Federal funds may
be considered as non-Federal in-kind contributions.
-47-
Section 12.2 Non-Federal Resources (Continued)
(2) All Projects May Claim:
(a) The value of the use of property to
which the recipient of award has
title (see Section 12.2d. (5) below);
(b) The value of the use of property
loaned to the project (see Section
12:"2d. (5) below);
(c) The value equal to the amount of
disbursements for goods and ser­vices
(including personnel services)
loaned to the project; and
(d) A value attributable to the services
of volunteers, either skilled or un­skilled.
(See Section 12.2d (6».
(3) A project may not claim as an in-kind resource:*
(a) The value of discounts allowed by
vendors for goods or services pur­chased
by the project;
(b) The value of any revenue waived by the
recipient of award as a result of
converting an item of property into a
project resource; or
(c) The value attributable to the use of
radio or television time.
(4) Any value claimed as an-kind resource must be:
(a) Identifiable in the project records;
(b) Necessary to the achievsnent of a
project's objectives;
( c) Fair and reasonable and may not
exceed the amount' allowable if the
item were actually purchased;
(d) Proportionate to the time the item
was available for use by the project;
* This list is not meant to be inclusive. Whenever the Project Director
has a question concerning the acceptability of a non-Federal in-kind
resource, the State agency should be consulted.
-48-
Section 12.2 Non-Federal Resources (Continued)
(e) Claimed only after the resource is
actually used by the project;* and
(f) Not included as contributions for
any other federally assisted program.
(,) . Depreciation and Use Allowances
The value attributable to any item of property
(including building space) to be used as an in-kind
resource is to be determined only by depreciation
(including use allovlance). Depreciation is the
acquisition cost of a building, capital improvements,
or equipment distributed over the estimated useful
life of the property. For items donated or loaned to
the project, the actual value of depreciation may be
claimed; however, such value may not revert to the
donor. In computing the value to be claimed for depre­ciation
and use allowances, see Section ll.2b (14).
(6) Volunteer Services
(a) Volunteer services may be furnished
~ professional and technical per­sonnel,
consultants, and other skilled
and non-skilled labor. The value of
volunteered service may be counted if
it is part of an approved project service,
is included in the approved budget, and
would otherwise by purchased on the labor
market.
(b) Volunteer services provided through the
ACTION agency Retired Senior Volunteer
Program may be used as non-Federal resources.
(c) Rates for volunteers should be consistent
with those regular rates paid for similar
work in other activities of the recipient of
award. In cases where the kinds of skills
required for the federally assisted activities
are not fOlIDd in the other activities of the
recipient of award, rates used should be con­sistent
with those paid for similar work in
the labor market in which the recipient of
awaro competes for the kind of services in­volved.
Suggested rates for use where no
local rates are available are contained at
the end of this section.
* Allin-kind resource is entered both as a receipt and a disbursement in
a project's accounts at the same time. See the Guide for Grantee Pro­gram
Accounting published by AoA for an illustration.
-49-
Section 12.2 Non-Federal Resources ( Continued)
(d) When an employer other than the recipient
of award furnishes the services of an
employee, these services shall be valued
at the employee's regular rate of pay
(exclusive of fringe benefits and overhead
cost) provided these services are in the
same skill for 'Which the employee is nonnally
paid.
(e) '!he number of hours of volunteer services
must be supported and accounted for by the
same methods used by the project for its
employees.
e. Federal resources matching Federal resources
(1) Non-Federal resources used to match other Federal
grants or contracts may not be used to match Title
VII project funds.
(2 ) Federal cash or in kind resources acquired during
current or prior years may not be used to match
funds provided under Title VII for project activities.
(J) Item (2) above is not applicable when there is expli­cit
statutory authorization for the use of Federal
funds to satisfy match:ing requirements in whole or in
part, as for example, Title I of P.L. 89-754 (Model
Cities Program, 42USC 3305d).
(4) Item (2) above is not applicable: (a) when the
Federal i'mOO :in question are those used to pay Indian
tribes for products produced under contract with the
Bureau of Indian Affairs, Depart:rrent of the Interior,
pursuant to 25 usc 47, and (b) to the Public Health
Service, Bureau of Indian Health contract funds.
-50-
Section 12.3
VALUATION OF VOLUNTEERED PERSONAL SERVICES
FOR PURPOSES OF COMPUTING THE NON-FEDERAL SHARE~!-
Hourly Rates
Accountant and Auditor
Architect
Bookkeeper
Brickmason, Stonemason, and Title Setter
Bus Driver
Carpenter
Cement and Concrete Finisher
Cook
Dental Technician
Dentist
Dietition and Nutritionist
Dressmaker Seamtress
Electrician
Engineer
Excavating, Grading and Road Machine Operator
File Clerk
Glazier
Instructor, College
Lawyer
Librarian
Nurse (other)
Nurse (registered)
Painter
Physician
Plasterer
Plumber
Printer
Professor, Assistant
Professor, Associate
Professor, College
Psychologist
Realtor
Recreation Worker
Secretary
stenographer
School Administrator
Social Worker (MSW)
Social Worker (other)
Surveyor
Teacher (elementary)
Teacher (secondary)
Therapist
Tinsmith, Coppersmith, Sheetmetal Worker
Truckdriver
olHf-Tutor
'I'y:pist
$ 9.00
9.00
3.00
6.50
4.00
6.00
5.50
3.50
5.00
22.00
5.50
3.50
6.50
9.00
5.50
2.50
5.50
6.00
20.00
6.00
3.00
4.50
5.50
24.00
6.00
6.50
5.00
7.50
9.00
11.00
7.50
6.50
4.00
3.50
3.00
9.00
6.00
4.00
4.00
6.00
6.50
5.00
6.00
4.00
3.00
2.50
olio This is a suggested schedule that may be used when local rates are
not available.
~H!- Tutor is defined as a person with one or more years of college.
-51-
Section 13 Purchase of Goods and Services
Goods and services obtained from a third party (an individual,
institution or organization outside the project's own organi­zation)
are subject to the conditions in this section. Third
party agreements (an agreement between parties to accomplish
a mutually beneficial objective).
13.1 General
a. 'lhe recipient of a nutrition project award may purchase
goods and services from public, non-profit or proprie­tary
agencies or individuals provided that such goods
or services are not available without cost from such
sources.
b. Such purchases must not result in the use of Title VII
funds to replace non-Federal funds available for goods
and services for target group eligible individuals.
c. Benefits from such purchases must not revert back to
individuals or groups contributing resources to the
project.
d. All purchase agreements with agencies must be in
writing and signed by authorized representatives of
the appropriate parties prior to the date set for
connnencement of their term.
e. The state agency shall evaluate the quality of goods
and services provided through third party agreements
to determine the suitability for project use.
13.2 Recipient of Award Responsibilities
a. The recipient of award retains overall responsibility
for all aspects of project operations.
b. The recipient of award must retain continuing basic
responsibility for determination. as to:
(1) Participants in the project; and
(2) Authorization, selection, quality effective­ness
and execution of services suited to the
needs of participants in the project.
c. 'lhe recipient of award must monitor the execution of .any
subcontract agreements in order to assure compliance with
all applicable standanis set forth in this booklet.
-52-
Section 13.2 Recipient of Award Responsibilities (Continued)
(1) Food vendors engaged by the recipient of
an award may make reasonable p rofit from such
operations in line with prevailing from
and profits in the area. Like any prudent
and cost conscious buyer, the recipient of
award shall not only refuse to pay more than
the going price for an item or services, but
also shall seek to control cost for the project.
(2) Prepared food must be of a quality commensurate
with its cost to the food vendor and must meet
the specifications set by the project.
d. Even though the recipient of award may subcontract with public
or private agencies or organizations to carry out the provi­sions
of Title VII, the overall operations of, and responsi­bility
for, a congregate meal site may not be subcontracted
to a private proprietary agency or individual.
13.3 Requirements of SUbcontractors
a. The sources from which goods and services are purchased must
conform to applicable provisions of Title VII of the Older
Americans Act, the regulations and this booklet.
b. Such applicable provisions must be set forth in the subcon­tractual
agreement.
c. All subcontracts are subject to all applicable state and
local laws and regulations.
d. Sources from which services are purchased must be licensed,
approved as meeting state licensing standards, meet applica­ble
accrediting standards, or in the absence of licensing or
accrediting standards, meet any standards or criteria estab­lished
by the State agency to assure quality of goods and
services.
13.4 Cost Requirements
a. Costs for the purchase of goods and services may not exceed
the amounts reasonable and necessary to assure good quality.
b. Recipients of project awards obligated by state or local law
to employ competitive bidding or other special purchasing pro­cedures
shall employ such procedures in making purchases for
the project.
c. Cost reimbursable contracts and affiliation agreements
Cost reimbursable contracts and affiliation agreements are
subject to the allowable cost principles contained in the
appropriate Office of 1-1anagement and Budget Circular or
-53-
Section 13.h Cost Requirements (Continued)
Federal Regulations; and to the cost conditions in this
section (13). The following documents contain the allow­able
cost principles for particular types of contractors :-l!-
state Gove~nts - "A Guide for State
Government Agencies. • ." U. S. DHEW
. (OASC - 6)
Local Governments - "A Guide for Local
Government Agencies Establishing Cost
Allocation Plans and Indirect Cost Rates
for Grants or Contracts with the Federal
Government" U. S. DHEW (OASC - 8)
Educational Institutions - "Guide for
Educational Institutions" U.S. DHEW
(OASC - 1)
Private Non-Profit Institutions - "A
Guide for Non-Profit Institutions" U.S.
DHEt-l (OASC - 5)
Commercial Organizations - "Principles
and Procedures for Use in Cost Reim­bursement
Type Supply and Research Con­tracts
with Commercial Organizations"
Code of Federal Regulations Title 41,
Public Contracts and l1anagement, Chapter
I Subpart 1-15.2
d. No item of equipment or other capital property valued in
excess of $100 may be acquired by the subcontractor through
the agreement wi.th the project without specific prior
approval of the SRS.
e. The recipient of project award is responsible for insuring
that all costs charged to the project as a result of cost­reimbursable
contracts' and affiliation agreements are allow­able
to the service purchased.
f. Records pertaining to the costs and expenses of cost­reimbursable
contracts and affiliation agreements must be
maintained and made available, upon request, to DREW audit
personnel. or the Comptroller General's Office in accordance
with the time periods set forth in section 14.2 of this
booklet.
oil- 'lhese publications are available for sale by the Superintendent of Docu­men"
t.s, vlashington, D.C. 20402. They should also be available in Deposi­tory
Libraries (for Federal publications).
-54-
Section 14 Project Financial Procedures
14.1 Project Obligations
a. Non-Federal resources must be contributed equal to
the non-Federal share of actual net costs for a
budget year. If a project reports Federal cash
received but unearned on the Nutrition Project
Financial Report for a budget year, the recipient
of a'l-vard then owes the State agency this amomt.
'lhis amount may constitute a cash advance on any
funds alvarded to the project by the State agency
for the following budget year.
b. If a portion of the Federal al-vard remains unearned
at the end of a budget year, this amount may be
can-ied-over to the subsequent budget year, if any.
Such carry-over amount must be authorized on the
notification of award.
c. If there is Federal cash unearned (non-Federal share
under-contributed) at the time the project is termin­ated,
this amount must be returned to the State
agency. If a project is unable to return this amount,
the State agency must assume responsibility for the
deficit from its own resources.
d. Liquidation of Obligations
All unpaid orders for goods or services purchased
during a budget year must be paid by the recipient
of award within thirty days after the end of that
budget year and before the final project financial
report is completed.
14.2 Accounting Requirements
a. All Federal nutrition project funds and any State and/or
local funds expended to earn such fmds shall be accounted
for in accordance with a State approved accounting system.
1he system used by the projects shall meet the following
minimum criteria:
(1) Federal nutrition project funds and non­Federal
funds used to earn such funds must
be accomted for separately from other re­cipient
of award fund accounts.
(2) The accounting records are to be itemized
in sufficient detail to show the exact
nature of all receipts and disbursements.
Each entry in the accounting records shall
refer to the document l'J'hich supports the
entry. Supporting documents shall be filed
in such a way that they can be readily located.
-55-
Section 14.2 Accounting Requirements (Continued)
(3) 'lhe accounting records shall provide accurate
and current financial reporting information.
(4) 'lhe accounting records of projects shall
fully disclose the total cost of the projects.
(5) .The accounting system shall possess an adequate
means of internal control to safeguard assets,
check ~~e accuraqy and reliability of accounting
data, promote operational efficiency, and encour­age
adherence to prescribed managanent policies.
b. All accounting recoms are to be kept readily available for
examination by personnel authorized to examine Title VII
accounts.
c. Such records shall be retained by public agencies, organi­zations
or institutions who are recipients of awards for a
period of three years, with the following qualifications:
(1) The records shall be retained beyond the three
year period if audit findings have not been re­solved;
(2) Records for non-expendable property which was
acqUired with Federal funds shall be retained
for three years after its final disposition;
(3) The retention period starts from the date of
submission of the final Quarterly Report of
Accountability for the budget year.
(4) Original docUIOOnts, such as invoices, checks,
time records, and payrolls in support of direct
costs, may be retained :in project files or in
the recipient of award I s regular files, provided
the recipient of award I s accounting records con­tain
adequate references for identifying and
locating the original documents. Microfilm
documents may be substituted for original records.
d. Private agencies, organizations or institutions who are
recipients of awards must ma:intain records for a minimum of
three years if audit has occurred and five years if audit
has not occurred, and in the case of audit exception, until
such exception has been cleared.
-56-
section 15 Audit Procedures
All financiaJ. activities under the Title VII program
are subject to Federal audit at both the State and
project level. DHElrI follows generally accepted audit­ing
practices in detennining that there has been a
proper accounting for and use of grant-in-aid funds.
'!he Secretary and the Comptroller General of the
United States or any of their duly authorized repre­sentatives
shall have access, for the purpose of audit
and examination, to any books, documents, papers, and
records that are pertinent to the project. Any excep­tion
which might result from Federal audit, whether
directed against the state agency or local recipients
of awards, shall be taken against the State agency.
Failure of a State agency to appeal a proposed audit
exception within sixty days after receipt of written
notification will make the action of DREW conclusive.
-57-
CHAPl'ER II
GUIDE FOR
APPLICATION FOR NUTRITION PROJECT AWARD
UNDER TITLE VII OF
THE OLDER AMERICANS ACT
ARIZONA STATE DEPARTMENT OF ECONOMIC SECURITY
SECTION ON AGTIW
1624 West Adams
.Fhoenix, Arizona 85007
CHAPTER II CONTAJNS FIVE PARTS
PART I - APPIJCATION COVER SHEET
PART n - AGREEHENT TO CONDITIONS BY APPLICANT AGENCY
PART III - BUDGET
PART IV - PLAN FOR THE PROJECT
PART V - COHPLIANCE ~iTI'H CIVIL RIGHTS ACT
-58-
APPLICATION FOR NUTRITION PROJECT AWARD
mSTRUCTIONS
Part I--App1ication Cover Sheet
1. Title of Project
Enter a brief (not to exceed 53 typewriter spaces, including punctuation
and spacing) descriptive title for the project.
2. type of Application
New - A project for which State agency support is being requested for
the first time.
Continuation - '!he succeeding portions of an approved project (usually
12 months) for which support is being requested.
Revision - An application which changes or replaces all or part of a
prior application.
Supplement - A request for the award of additional funds to be obligated
within the approved project period.
3. Name of Project Director
'!his is the person who has the immediate responsibilities for the
direction of the project for which support is being sought. Enter title,
department or appropriate subdivision of applicant agency, mailing
address, social security number, area code, and telephone number.
4. App1ic~t Agency
The applicant agency is that institution or organization which is to assume
legal nnd financial responsibility and accountability for the use and
disposition of any funds awarded on the basis of this application.
5. Self Explanatory
6. Dates of:
A. Project Period - Enter the dates of the proposed project period.
The project period is the total time period (sum of th~ budget years)
proposed for support of the project with Federal funds. The project
period should not exceed three years. The starting time for the pro­ject
should allow' sufficient time for review at the Regional and
State level.
Enter the total amount of Federal funds requested for the entire
proposed project period. This item need not be filled in for
continuation awards.
-59-
B. Budget Year - Enter the dates of the proposed budget yeur.
The budget year is a period of time within an approved project
period covered by a specific budget for which an award is made.
Budget years are generally 12-month periods, but may be for shorter
periods if appropriate.
7• ~of Organization
Check appropriate box.
8. Payee
Enter the Name, Title, and full Address of the financial person to whom
checks are to be sent.
11. ~nature ??2; Date
Enter in ink the signature of the person named. in Item 5. Per signatures
are not acceptable.
-60-
STATE OF ARIZONA
DEPARTMENT OF EDONOMIC SECURITY
SIDTION ON AGING
1624 West Adams
Phoenix, Arizona 85007
APPLICATION FOR NUTRITION PROJECT AWARD
UNDER TITLE VII OF THE OLDER AMERICANS ACT
(FOR ST~TE AGENCY USE) ..
\
1. TITLE OF PROJECT:
2. TYPE OF APPLICATION:
O'NEW o CONTINUATION OR~VISION o SUPPLEMENT
3. PROJECT DIRECTOR (NAME, TITLE, DEPARTMENT, AND 6. OATES OF: FROM THROUGH AMOUNT
ADDRESS· STREET, CITY, STATE, ZIP CODE):.
A. PROJECT S
PERIOD
$
B. BUDGET
YEAR .
7. TYPE OF ORGANIZATION:
; o PUBLIC AGENCY
I\ IAL SECURITY NO.: AREA CODE TELEPHONE? NO. o PRIVATE NON·PROFIT AGENCY
4. APPLICANT AGENCY (NAME AND ADDRESS· 8. PAyeE (SPECIFY TO WHOM CHECKS SHOULD BE
STREET, CITY, STATE, ZIP CODE): SENT· NAME, TITLE, !"DDRESS):
.
. . •
5. NAME, TITLE, ADDRESS OF OFFICIAL AUTHORIZED ,9. (FOR STATE AGENCY USE)
TO SIGN FOR APPLICANT AGENCY: .
10. TERMS AND CONDITIONS: It is understood end agrnd bV the undersigned that; 1) funds awarded as a resLJILPf this request are to be
.xpended for the purposes set forth herein and in accordance with ell applicable laws, regulations, policies,and proclXlures of this State
.nd the Administration on Aging, Social and Rehabilitation Service of the U.S. Department of Health. Education, and Welfare; 2) any
(
proposed changes in the proposal as approved Will be sU~llted in writing by the applicant and upon notific.llion of approval by the
Stateagancv shall be deemed incorporated into and become a part of this agreement; 3) the attached Assurance of Compliance
(Form AoA·4411 wit~ the Department of Health, Education, end Welfare RegulatIOn issued pursuant to Title VI of the Ciyj I Ri'1 hU
Act of 1964 applillS to this proposal a, approved; and 411unds awarded bV the State Agoncy may be termioJtl'd at any time for -.
violations of anv terms and requirements of this i1orHment.
,.
(- .. ' ~
11. SIGNATURE (PERSON NAMED IN ITEM 6): t - L
SIGNATURE DATE \. !
.0
PART II
AGREEMENT TO CONDITIONS BY APPLICANT AGENCY UPON SUffinSSION OF APPLICATION
FOR NUTRITION PROJECT AWARD.
The applicant agency submits this applicatiol1 for a Nutrition Project Award
under Title VII of the Older Americans Act of 1965, as amended, in keeping
with the provisions of this Part and the information provided in Parts II
and III of this application. The ----~--::-:-..,..."""":""-:---"T"""------
(Applicant Agency)
understands and agrees that the following provisions are part of the
official application and as such become binding upon the conduct of the
p:r;-oject subsequent to the award of any funds by the State agency.
The Applicant Agency:
1. Certifies it has subm~tted this application for a Nutrition
Project Award for comment to the following regional council
of govemments which has jurisdiction over the geographic area
selected as the proposed project area: ,
----------', , , ":"":'------:-:---r-~_:__. Where comments have been received,
they are attached to this application.
2. Agrees that the project will be carried out in accordance with
Title VII of the Older Americans Act, the program regulations
issued thereto, the policies and procedures establiShed by the
State agency for the Nutrition Program, and the tems and condi­t;
i.ons of this application as approved by the State agency in
making any award of funds. In this connection, the applicant
agency certifies that the accompanying application for grant
award under the Older Americans Act is in complianoe, and the
operation of any project receiving such a grant award will be
in compliance with the following:
a. The Federal requirements for direct and indirect costs.
b. The Federal requirements covering in-kind resources
and their accountabUity.
c. Federal resources (funds, property, labor, etc.) will
not be used directly or indirect~ to match addition­al
Federal funds. Exception---when there is explicit
statutory authorization for the use of Federal funds
to satisfy matching requirements in whole or in part,
as for example, Title I of P.L. 89-754 (Model Cities
Program, 42 USC3305 D).
d. Local resources already used to match Federal funds
will not again be used to match Federal funds.
-62-
PART II-Agreement (Cont.)
3. Agrees that where subcontracts are proposed for the
operation of meal sites, preparation of food, or
the provision of meals or supporting social services,
and are approved as part of any award of funds, the
applicant agency retains full and complete responsi­bility
for the operation of the project in keeping
with the policies and procedures established by the
State agency for the Nutrition Program. The appli­cant
agency will be held accountable by the state
agency for all project expenditures; and will ensure
that all expenditures incurred by the subcontracting
agency (ies) will be in accordance with the cost
policies and procedures established by the State
agency, in keeping with guidelines of the Administra­tion
on Aging. Copies of the proposed subcontracts
are submitted with this application.
4. Agrees to cooperate in joint planning with exist­ing
and any future area or local agencies responsi­ble
for comprehensive planning in aging in the geo­graphic
area for which the project is proposed, and
with the providers of services to the aging in the
area in order to provide additional needed services
to nutrition project participants.
5. Agrees to provide for such training as may be
necessary to enable paid and volunteer project
personnel to administer the project. Costs for such
training have been included in the bUdget developed
for the project and submitted as part of this appli­cation.
6. Agrees to cooperate and assist in any efforts under­taken
by the State agency or the Administration on
Aging to evaluate the effectiveness, feasibility, and
costs of the project.
7. Agrees that more than one-half of the membership of
the Project Council established for the project shall
be actual consumers of the nutrition services of the
project and shall be representative of the congregate
meal sites and i'urther agrees that the operations of
the Project Council shall be carried out in accordance
with the policies and procedures established by the
State agency.
8. Agrees that no personal information obtained from an
individual in conjunction with the project shall be
disclosed in a fom in which it is identified with
him without written consent of the individual con­cerned.
-63-
PART II-Agreement (Cont.)
9. Agrees to keep such records and make such reports
in such form and containing such information as
may be required by the State agency and in accord­ance
with guidelines issued by the Administration
on Aging.
10. Is cognizant of and agrees to operate the project
fully in conformance with all applicable State and
local standards, including fire, health, safety
and sanitation standards, prescribed in law or
regulations.
11. Agrees to maintain such accounts and documents as
will serve to permit expeditious determination to
be made at any time of the status of funds within
the award, including the disposition of all monies
received from the State agency, and the nature and
amount of all charges claimed to be against such
funds.
12. Agrees to comply with Title VI of the Civil Rights
Act of 1964 (P.L. 88-352), and the regulation issued
pursuant thereto. An Assurance of Compliance with
such regulation (Form HEW-441) is attached. Also,
further certifies that the applicant agency has no
commitments or obligations which are inconsistent
with compliance with these and any other pertinent
Federal regulations and policies, and that any
other agency, organization, or party which parti­cipates
in this project shall have no such commit­ments
or obligations.
Name and Title of Official Authorized to
Sign for Applicant Agency
-64-
Signature
Date
Revised 6/14/73
PART III
General
This part of the application consists of: (1) Budget Summary Form which provides a
summary of project costs for a budget year; (2) Supporting Budget Schedules which
relate line item costs with program activities of the project; and (3) Budget
Estimates for Subsequent Budget Years.
Specific Instructions:
BUDGET SUMMARY FOR BUDGET YEAR
Complete the individual Supporting Budget Schedules before completing this Part.
Insert the dates of the proposed budget year. This is a period not to exceed 12
months but may be for a shorter period, if appropriate. The dates entered on the
Budget Summary Form should be the same as those entered in Item 6.B of the Appli­cation
Form, Part I.
Complete Section A., Direct Costs, as indicated. Meals costs (column 2) are
obtained by adding the totals for column 2 and 3 on the supporting budget
schedules. Supporting Social Services Costs (column 3) is the sum of the
costs entered under columns (5) through (11) of the Supporting Budget Schedules
for each of the budget categories listed. Column (4), Administrative costs, are
taken from the total of column (12) of the Supporting Budget Schedules. Place
budget category totals in column (5).
Complete Section B., Indirect Costs if applicable, as directed. The Indirect
Costs to be entered in this Section are ~ those associated with the applicant
agency. Indirect costs associated with subcontractors must not be entered here.
To claim indirect costs, all grantees must have an indirect cost rate which has
been negotiated with the State Agency on Aging. Be sure to check block marked
Salaries and Wages or block marked Total Direct Costs.
Please note that unless the negotiated agreement stipulates otherwise, fringe
banefits must be excluded when salaries and waqes are used as comrut~tion base.
Section C: Enter the Total Project Costs in the space provided.
Section 0: Enter the amount of Project Income if such income has been budgeted
as part of the Direct Costs of the project. If not, enter a zero.
Section E: Subtract Project Income (line D) from Total Project Costs (line C)
to arrive at Project Net Costs.
Section F: Enter the percentage and amount of Local Non-Federal Participation.
Section G: Enter the percentage and amount of Funds Requested. The sum of
lines F and G should equal the amount entered on line E.
-65-
Revised 6/14/73
SUPPORTING BUDGET SCHEDULES
The Supporting Budget Schedules are designed to relate line item costs (listed
under Budget Category) with the program activities to be undertaken by the
~roject during the proposed budget year. Each cost is to be entered across
from the proper Budget Category and under the Program Activities heading.
Enter all estimated costs to be met from funds re uested, local non-Federal
participation (cash and in-kind), and project income. U.S.D.A. donated foods
may not be included in the budget either as in-kind matching or as an in-kind
payment from the State agency.) All amounts entered are to be cumulative
through the end of the proposed budget year.
If a cost item listed under any budget category is to be used in support of
more than one program activity, the costs related to that item must be pro­rated
across the number of actvities for which the item is used or in­volved.
For example, if any individual staff member's time is spent on more
than one activity, the related salary and fringe benefits costs must be dis­tributed
across the appropriate program activities based on the percentage of
time spent for each program activity. The figure shown in column 13 (total
costs) should be the total annual salary for the position or individual described.
If the applicant agency proposes to enter into any subcontracts for the opera­tion
of meals sites, the costs related to such subcontracts must be treated as
part of the total budget and distributed among the appropriate budget categories
and program activities. All other proposed subcontracts for less than an entire
site operation (e.g., preparation of meals, provision of social services or
other goods and services) must be identified separately and should be entered
only under the budget category - Other Costs. (See further instuctions under
Item 6, Other Costs, below.)
1. Personnel (p.2) - List by name (if available) and title of position each indi­vidual
whose salary and fringe benefits will be a cost to the project. Enter
the dollar amount of such costs under the appropriate program activity.
Enter the total Personnel Costs for each program activity and the Total Costs
in the column provided.
2. Equipment (p.3) - An item of equipment is an article of property procured or
fabricated which is complete in itself, is of a durable nature, and has an
expected service life of more than one year. (This budget category shou~d
also include the cost of any other capital assets - land and buildings.)
List individually each item of equipment for which costs will be incurred
(including insurance, freight, and accessories). Enter the cost for each
item under the appropriate program category. Enter the total Equipment
Costs for each program activity and the Total Costs in the column provided.,
-66-
Revised 6/14/73
LOCAL NON-FEDERAL PARTICIPATION
List by source and amount, items proposed as Local non-Federal participation
in the project. Enter these items as appropriate, under CASH RESOURCES or IN­KIND
RESOURCES.
BUDGET ESTIMATES FOR SUBSEQUENT BUDGET YEARS
Enter the number of the budget year in columns (1) and (2), for example second,
third, etc.
Complete rest of form as indicated.
-67-
(STATE AGENCY)
APPLICATION FOR NUTRITION PROJECT AWARD
UNDER TITLE VII OF THE OLDER AMERICANS ACT
(FOR STATE AGENCY USE)
Rev. 6-15-73
1. TITLE OF PROJECT:
2. TYPE OF APPLICATION:
DNEW o CONTINUATION D REVISION D SUPPLEMENT
3. PROJECT DIRECTOR (NAME, TITLE, DEPARTMENT, AND 6. DATES OF: FROM THROUGH AMOUNT
ADDRESS· STREET, CITY, STATE, ZIP CODE):
A. PROJECT $
PERIOD
$
B. BUDGET
YEAR
7. TYPE OF ORGANIZATION:
DPUBLIC AGENCY
SOCIAL SECURITY NO.: AREA CODE TELEPHON~NO. DPRIVATE NON·PROFIT AGENCY
4. APPLICANT AGENCY (NAME AND ADDRESS· 8. PAYEE (SPECIFY TO WHOM CHECKS SHOULD BE
STREET, CITY, STATE, ZIP CODE): SENT· NAME, TITLE, ADDRESS):
5. NAME, TITLE, ADDRESS OF OFFICIAL AUTHORIZED 9. (FOR STATE AGENCY USE)
TO SIGN FOR APPLICANT AGENCY:
10. TERMS AND CONDITIONS: It is understood and agreed by the undersigned that; 1) funds awarded as a result of this request are to be
expended for the purposes set forth herein and in accordance with all applicable laws, regulations, policies, and procedures of this State
and the Administration on Aging, Social and Rehabilitation Selvice of the U.S. Department of Health, Education, and Welfare; 2) any
proposed changes in the proposal as approved will be submitted in writing by the applicant and upon notification of approval by the
State agency shall be deemed incorporated into and become a part of this agreement; 3) the attached Assurance of Compliance
IForm AoA-441) witl> the Department of Health, Education, and Welfare Regulation issued pursuant to Title VI of the Civil Rights
Act of 1964 applies to this proposal as approved; and 4)tunos awarded by the State Agency may be terminated at any time for
violations of any terms and requirements of this agreement.
11 SIGNATURE' (PERSON NAMED IN ITEM 51
-'--'~~STGNAiURI:-~ '-.- --_... --.-DArr~--·--
.
BUDGET SUMMARY FOR BUDGET YEAR PAGE 1 OF 7
FROM TO
(COMPLETE SUPPORTING BUDGET SCHEDULES BEFORE THIS PARTI
f-~ev. 6-15-73
A. DIRECT COSTS
SUPPORTING SOCIAL ADMINISTRATIVE TOTAL PROJECT COSTS
BUDGET CATEGORY MEALS COSTS SERVICES COSTS COSTS ISUM OF COLUMNS 2, 3. & 4)
111 121 131 (4) 15)
1 PERSONNEL (INCLUDING $ $ $ $
FRINGE BENEFITSI
2. EQUIPMENT
3 RAW FOOD
4. TRAVEL (STAFF ONLY)
5. CONSULTANTS
6. OTHER COSTS'
7. TOTAL DIRECT COSTS
$ $ $
B INDIRECT COSTS
a. IS INDIRECT COST REQUIRED' d. BASED ON:
ONO DYES IJ SALARIES AND WAGES
b. PERCENTAGE RATE: ---% I'] TOTAL ALLOWABLE
r DIRECT COSTS
c. NEGOTIATED AGREEMENT:
$
DATE e. BASE: $
$
C. TOTAL PROJECT COSTS (TOTAL LINES A(517 AND BI
$
D. PROJECT INCOME
$
E PROJECT NET COSTS (LINE C LESS LINE DI
$
F LOCAL NON-FEDERAL PARTICIPATION %
$
G FUNDS REQUESTED (LINE E LESS LINE FI %
'INCLUDES CONSUMABLE SUPPLIES EXCEPT RAW FOOD
SUPPORTING BUDGET SCHEDULE PAGE 3 OF·7 1 R"" h.. 1 <;.."1
PROGRAM ACTIVITIES II
TOTAL
MEALS SUPPORTING SUPPORTING SERVICES BY ACTIVITY COSTS
SERVICES ESCORT & INFOR- ~ SUM COL.
BUDGET HOME
TOTAL TRANSPOR- MATION & NUTRITION SHOPPING ADMIN-CATEGORY
CONGREGATE DELIVERED =S(5U)M-(1C11OL. TATION OUTREACH REFERRAL COUNSELING EDUCATION ASSISTANCE RECREATION ISTRATION (2)-((41)3+)(121
(11 (2) (3) (4) (5) (6) (7) (8) (91 (10) (111 (12)
2. EQUIPMENT $ $ $ $ $ $ $ $ $ $ $ $
(ITEMIZE)
TOTAL EQUIP- $ '$ $ $ $ $ $ $ $ $ $ $
MENT COSTS
3. RAW FOOD $ $ $ $ $ $ $ $ $ $ $ $
TOTAL RAW $ $ $ $ $ $ $ $ $ $ $ $
FOOD COSTS
6-15-73
SUPPORTING BUDGET SCHEDULE PAGE 5 OF7
Rev
PROGRAM ACTIVITIES
TOTAL
MEALS
SUPPORTING SUPPORTING SERVICES BY ACTIVITY COSTS
SERVICES
ESCORT & INFOR- = SUM COL
BUDGET HOME = STUOMTACLOL TRANSPOR- MATION & NUTRITION SHOPPING ADMIN- (2H4)+(12)
CATEGORY CONGREGATE DELIVERED (5Hl1) TATION OUTREACH REFERRAL COUNSELING EDUCATION ASSISTANCE RECREATION ISTRATION (13)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
6. OTHER $ $ $ $ $ $ $ $ $ $ $ $
COSTS"
TOTAL OTHER $ $ $ $ $ $ $ $ $ $ $ $
COSTS"
"INCLUDES CONSUMABLE SUPPLIES EXCEPT RAW FOOD
PAGE70F7
BUDGET ESTIMATES FOR
SUBSEQUENT BUDGET YEARS
Rev. 6-15-73
~~ BUDGET BUDGET ~~ YEAR YEAR ~ (1) (2)
A. ESTIMATED
TOTAL PROJECT COSTS
B. ESTIMATED
PROJECT INCOME
C. ESTIMATED NET
PROJECT COSTS
(LINE A LESS LINE B)
D. ESTIMATED
LOCAL NON·FEDERAL
PARTICIPATION
E. ESTIMATED
FUNDS REQUEST
(LINE C LESS LINE D)
F. ESTIMATED
NUMBER OF MEALS
TO BE SERVED
PART III: BUDGET AND FINANCIAL INFORMATION
1. Descrihe the proposed plan for the management and control of
the f:l,.nancial resource!'; of the project. Where subcontracts are
proposed, special attention should be directed to the method hy
which the applicant agency will disburse and account for funds
to the subcontracting agency(ies).
2. If the non-Federal matching proposed hy the applicant ap,ency is
less than 10 percent of the project net costs, set forth a justi­fication
as to why the applicant agency proposes a lesser rate of
non-Federal participation.
3. Set forth the amount of proposed project funds earmarked for the
provision of training of paid and volunteer project personnel as
agreed to in Part I of this application.
4. If the services of volunteers have heen included as part of the
non-Federal participation for the proposed project, the appli­cant
agency must include the rate schedule used to compute such
non-Federal participation.
-73-
Revised 6/14/73
3. Budget Year
Enter the dates on which the budget year begins and ends and also indicate
the time period being reported on, i.e., monthly or quarterly. If quarterly,
indicate the three months included in the report.
4. Project Award Information
A.
B. New Federal funds awarded - Enter the amount of new funds awarded for
the budget year being reported.
C. Total Federal award - Enter the total of lines 4-A and 4-B.
5. Disbursements by Program Activity
This section of the form is designed to relate line item costs (listed in
the Cost Categories Column) with the program activities of the project. To
achieve this, each cost is to be entered across from the proper cost cate­gory
and under the program heading for which it was incurred. Enter all dis­bursements
including cash and in-kind. Do not include obligations for future
payment.
All amoun~entered are to be cumulative from the beginning of the current budget
year through the end of the period being reported on.
Cost Categories
A-F.
Enter the cumulative costs incurred for each of these cost items under
the program activity heading fo~ which they were used. Thus, if a project
incurs $100,000 in personnel services for its congregate meals service,
this amount should be entered in the column for congregate meals.
G. Total direct costs - Add lines A through F for each program activity.
H. Ind~rect costs - Enter the indirect cost rate if appropriate for your
proJect, (as a percent) as indicated on the latest notification of award.

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~
I ESD 11.2:N 87
."...,..,
AlJ4nJISTRATION
lITLEVII
OF THE
NUTRITION PROGRAM.S ;FOR THE ELJ;)li1i1Y
STATE OF AP..IZQN.j\
DEPAltTMENT OJ ECONOMIC S]~CU~:r,rt
EU:-.EAU ON ~GINq
1711 West Jefferson,
P. 0. P"'.lt 6123
Phoer.;i A:, J.ri.zona 85007
•
This is to advise that the name Section on Aging has been re-designated
as follows:
Bureau on Aging
Department of Economic Security
1717 West Jefferson, P.O. Box 6123
Phoenix, Arizona 85005
Telephone: 271-4446
INDEX
CHAPTER I -- TIIFORMATION AND STANDARDS
Part I - General Provisions 1
Part II - Standards for State .Agency 4
Part III - Standards for Individual Project Operations 9
CHAPTER II -- APPLICATION FOR NUTRITION PROJEDT AWARD
Part I - Application Cover Sheet 59
Part II - Agreement to Conditions by Applicant Agency 62
Part III - Budget 65
Part IV - Plan for the Project 77
Part V - Compliance with Civil Rights Act 84
CHAPTER III -- COMMENTS REGARDING NOTIFICATION OF NUTRITION
PROJECT AWARD 86
CHAPTER IV QUARTERLY NUTRITION PROJECT REPORT 90
CHAPTER V -- QUARTERLY NUTRITION PROJECT FINANCIAL REPORT 95
CHAPTER VI -- REQUEST FOR PAYMENT OF FEDERAL FUNDS 101
CHAPTER I
INFORMATION AND STANDARDS
TrrLE VII OF 'lliE
OLDER AMERICANS ACT
ARIZONA· STATE DEPAR1'MENT OF ECONOMIC SECURITY
SECTION ON AGING
1624 West Adams
Phoenix, Arizona 85007
PART I
GENERAL PROVISIONS
Section 1 Purposes
Under the provisions of Public Law 92-258, signed by the
President on March 22, 1972, a national Nutrition Program
for the Elderly was added to the Older Americans Act of
1965. This program is designed to meet the nutritional
needs of individuals aged sixty and older who do not eat
adequately because: (1) they cannot afford to do so;
(2) they lack the knowledge and/or skills to select and
prepare nourishing and well-balanced meals; (3) they have
limited mobility which may impair their capacity to shop
and cook for themselves; and (4) they have feelings of
rejection and loneliness which obliterate the incentive
necessary to prepare and eat a meal alone. These and
other physiological, psychological, social and economic
changes that can occur with aging result in a pattern
of living which may cause malnutrition and further
physical and mental deterioration.
The purpose of this program is to provide older Americans,
particularly those with low incomes, with low cost,
nutritionally sound meals served in strategically located
centers such as schools, churches, community centers,
senior citizen centers, and other public or private facil­ities
where they can obtain other social and rehabilitative
services. Besides promoting better health among the older
segment of the population through improved nutrition, such
a program is aimed at reducing the isolation of old age,
offering older Americans an opportunity to live their
remaining years in dignity.
-1-
Section 2 Definitions
For the purpose of this booklet the following definitions
apply:
a. Donated Foods
Donated Foods means foods made available by the United
States .Department of Agriculture (USDA) through the Food
Distribution Program for use by institutions and households
that have been detennined to be eligible for that program.
b. Ep.igible Individuals
Eligible individuals means those persons who are age sixty
or over and who:
(1) Cannot afford to eat adequately;
(2) Lack the skill and/or knowledge to select and prepare
nourishing and well-balanced meals;
(J) Have limited mobility which may impair their capacity
to shop and cook for themselves; or
(4) Have feelings of rejection and loneliness which obli­terate
the incentive necessary to prepare and eat a
meal alone.
'!he spouses of such individuals are also considered eligible
individuals.
c. Minority
Minority means those personswho identify themselves as
American Indian, Negro, Oriental, or Spanish language.
d. Nutrition Project
Nutrition project means a project providing the nutrition
services financed with Title vn funds and meeting the
requirements and standards set forth by Public Law 92-258,
the related Federal regulations and this booklet.
e. Nutrition Services
Nutrition services means the range of nutrition or dietetic
services that must be available and accessible to project
participants. Such services are:
(1) Meals served in congregate settings.
(2) Meals delivered to the homebound, where
necessary and feasible.
-2-
Definitions (Continued)
f. gtate Agenc.l
State agency means the single State agency established or
designated by the Governor as the sole agency for adminis­ter.
ing or supervising the administration of the Title VII
state Plan and coordinating operations under the Plan with
other agencies providing services to the elderly. In
Arizona this is the Department of Ebonomic Security which
has delegated many staff functions to its Section on .Aging.
g. ~EI?orting Social Services
Supporting social services means the range of social services
that must be available and accessible to project participants
as needed. These mandatory services consist of the following:
(1) Outreach
(2) Transportation
(3) Personal escort
(4) Information and Referral
(.5) Health and welfare counseling
(6) Nutrition education
(7) ~opping assistance
(8) Recreation incidental to the project
h. Target Group
Target group means those eligible individuals identified by
the State agency in the Annual state Operating Plan who are
determined to be in greatest need of nutrition services.
-3-
PART II
STANDARDS FOR STATE AGENCY
Section 3 Procedures for Making Project Awards:
a. Not more than twenty percent of a State I s Title VII nutrition
program allotment for a given fiscal year, excluding that
portion necessar,y for State plan administration, shall be used
for the provision of supporting social services as prescribed in
Section 10 below. Individual project awards may not exceed this
twenty percent limitation, except in highly unusual, exceptionally
well justified cases, as approved by the State Division for the
Aging.
b. The State agency may award nutrition project funds, in the fom
of a grant or contract, in cash or in kind, to any public or
private non-profit agency, organization, institution, political
subdivision of a State, or Indian tribal organization, hereinafter
referred to as recipient of award. It is recommended that each
private grantee or contractor be incorporated in order to safe­guard
the interests of the State agency, the recipient of award,
and the individuals involved in the program.
c. To the extent feasible, the State agency must make awards to
projects, or provide for subcontracts within such awards, which
will be operated by minority recipients of awards at least in
proportion to their numbers of eligible individuals in the State.
A project will be considered to be operated b.Y minority recipients
of awards if the project award is made to an organization
primarily operated by, and primarily servL'1g the needs of,
minority individuals.
d. All applications for support under Title VII of the Older
Americans Act must be submitted to the State agency on an official
application fom prescribed in Chapter II of this booklet.
e. State agencies are responsible for assuring that all applicants
for new projects sign an Assurance of Compliance to the Civil
Rights Act of 196).j. fom before a project award is approved. The
fom must also be signed by all subcontractors prior to execution
of the subcontract.
f. Comments from the appropriate ~gional Clearinghouse Authority
(Budget Circular A-95) must accompany each application.
g. Nonnally, in approving a grant for a nutrition project, the
State agency will require that the project start on the first day
of a fiscal quarter.
h. Title VII of the Older Americans Act permits Federal support for
the expansion of existing successful programs for the elderly.
When an exist:ing program is expanded, only that portion financed
through Title VII support and the required non-Federal participa­tion
constitute a Title VII nutrition project and that portion
must comply with the regulations and the guidelines contained in
this booklet.
-4-
Section 3 Procedures for Making Project Awards (Continued)
Criteria for approval of expanded projects
i. In approving support of the expansion of an existing program,
the State agency must be assured that:
(1) The amount of non-Federal resources expended
. for the elderly for each year in which Title
VII payments are made, is not less than the
amount expended by the recipient during the
financial year prior to the funding of the
project under Title VII. For each expanded
award, the State agency shall indicate on
the notification of nutrition project award
the amount of expenditures which the recipient
agency must maintain during the project period.
(2) Title VII funds will not be used to replace
any existing non-Federal resources.
(3) The Title VII law, regulations, and guide­lines
contained in this booklet must be met
by that portion of the expanded projects
funded with Title VII and matching funds.
Exception:
Nutrition projects initiated under Title IV of
the Older Americans Act, may receive funding
under Title VII through June 30, 1973 if they
conform to the provisions of Title VII. In
order to receive fundings under Title VII
after June 30, 1973, the project must also
conform to all additional provisions contained
in the regulations and this booklet.
j. The State agency must establish procedures that will provide
the opportunity for a hearing before the State agency for any
applicant whose application for Title VII funds is denied.
-5-
Section 4
Section 5
Payment of Nutrition Funds to Projects
a. Payment of nutrition funds by the State agency to a
recipient of an award may be either in the fonn of an
advance or a reimbursement. Advances to recipient of
an award shall be paid on a monthly basis.
b. Before making payment to a recipient of an award, the
State agency must evaluate the project's cash require­ments
and cash balance on hand. Advance payments should
be limited to the project's cash requirements for the
month, as opposed to merely making twelve equal payments
during the budget year.
Project Suspension and Termination
a. Conditions may arise which would make suspension of
project operations desirable. Where conditions warrant
it, the State agency may suspend project operations.
b. To suspend project operations, the State agency must
notifY the recipient of an award in writing of the action
being taken, the reason for such action, and the condi­tions
of the suspension. This notice must be given prior
to the effective date of suspension and must note the
right of the recipient of an award to appeal such decision
to the State agency.
c. There can be no Federal participation in any costs accrued
by a project during a period of project suspension.
d. In suspending project operations, the State agency must
determine the amount of unearned Federal nutrition funds
the project has on hand. The anticipated length of project
suspension and the amount of the Title VII fund balance on
hand will dictate whether the State agency should require
the balance to be returned.
e. The State agency may reinstate a suspended project if it
detennines conditions warrant such action. Such reinstate­ment
will be made by issuance of a new notification of award.
f. Federal participation in project costs may resume immediately
upon reinstatement, but not for any costs accrued during the
period of suspension. The obligational authority unearned at
the time of suspension again becomes available for earning by
the project at the previously established matching ratio.
g. A project shall be considered terminated when its operations
have been suspended for more than three consecutive months in
any budget year.
h. For adequate reasons, the State agency may tenninate Federal
support of a project prior to the end of an approved project
-6-
Section 5 Project Suspension and Termination (Continued)
period or budget year. The following are examples
of conditions under which the State agency would
normally terminate Federal support:
(1) A recipient of award violates the condition
under which the proposal was approved;
(2) Program performance is inadequate; and/or
(3) Non-Federal resources are not available.
i. To terminate a project, the State agency must notify the
recipient of the award in writing of the action being taken
prior to the effective date of termination, the reasons for
such action, and the right of the recipient of award to
appeal procedures. This notice must also specify the reports
to be completed (see j. below).
j. vfuen Federal support to a project terminates on completion
of the final approved budget year or earlier, as described
in a. above, the recipient of award must complete and sub­mit
a final Quarterly Nutrition Project Report and a
Nutrition Project Financial Report to the state agency.
(Chapters IV and V)
k. Hhen a project ceases to receive Federal funds, equipment
and supplies purchased with l'itIe VII funds must be dis­posed
of in accord with this booklet and normal State
procedures. Any funds realized from the sale of such
equipment or supplies is an adjustment in the project cost.
If property purchased with Title VU funds is to continue
to be used to further the purpose of Title VII of the
Older Americans Act, the state agency must secure a written
statement assuring this fact from the recipient of award.
Section 6 Volume Purchasing and USDA Food Assistance
a. At the request of one or more recipients of awards, the
State Section on Aging may purchase or request another
State agency to purchase conunodities including foods,
services, equipment, and supplies on the open market for
use by the requesting nutrition projects.
b. 'I'he State agency shall establish procedures for the alloca­tion
of costs among projects for items purchased upon
request. Such items may be considered in-kind resources
made as payment in lieu of funds paid to projects.
c. The State agency will work with the State Department of
Education in order to assure maximum feasible utilization of
donated foods in nutrition projects. As a minimum, the State
agency will, when a nutrition project has been given an award,
-7-
Section 6 Volume Purchasing and USDA Food Assistance (Continued)
Section 7
inform the State Department of Education of the project I s
name, address, the location of its meal site(s) and the
anticipated number of elderly persons to be served at
each site, in order to facilitate participation in the
program by the projects.
General
a. It is the responsibility of the State S3ction on Aging
to assure that the recipients of awards under Title VII
shall be infomed of, and meet, all of the project stan­dards
prescribed in this booklet.
b. All standards set forth in Section 9, and other standards
as indicated, must be met initially upon funding of a
Title VII project. Other standards can be achieved on an
incremental basis as indicated.
-8-
PART III
STANDARDS FOR INDIVIDUAL PROJECT OPERATIONS
Section 8 Project Administration
8.1 Pro ject Area
a. Each project must be operated within the boundaries of the
project area established in the proposal and approved by the
State agency. The designated project area must meet the
standards as set forth by the State agency and must be of
sufficient size for the economical delivery of meals, the
efficient provision of needed supporting social services, and
the coordination and linkage of project activities with related
service programs in the project area.
b. The nutrition and supporting social services made available by
the project shall seek to serve those target group eligible
individuals in greatest need throughout the project area. Such
a goal may be achieved on an incremental basis.
8.2 Project Objectives
a. Tn order to be eligible for an award, pro ject applicants must
establish measurable objectives which reflect the purposes
and standards set forth in this booklet.- Such objectives must
be related to the needs of the eligible individuals in the
project area established and must relate to:
(1) Individuals to be served, including:
(a) Persons with income below
the poverty threshold; and
(b) Other eligible individuals.
(2) Services to be provided, including the:
(a) Number and frequency of meals
to be served in congregate
settings and in home delivered
settings where appropriate.
(b) Level of supporting social
services as prescribed in
Section 10 of this booklet.
8.3 Project Scope
a. Awards shall be made only to projects that will serve an
annual average of at least one hundred meals per day five
or more days a 'Week throughout the project area. Projects
shall provide home delivered meals where necessary and
appropriate, to meet the needs of target group eligible
homebound individuals.
-9-
b. Exceptions to a. above may be permitted for projects
operated :in sparsely populated rural areas if the need
for such exception is docmnented and on file at the
State agency. Projects in such rural areas:
(1) May serve less than one hundred
meals per day; and
(2) Must serve meals at least five
days a week at sites throughout
the project area, but not
necessarily five days a week at
each site.
c. In addition to the minimtnn scope of nutrition services
prescribed in a. and b. above, supporting social services
must be provided as set forth in Section 10 of this booklet.
Section 8.4 standards for Recipients of Awards
a. The applicant agency may be only a public or private non­profit
agency, organization, or institution, political
sub-division of a State, or Indian tribal organization,
which can danonstrate to the state agency a capacity for
the effective delivery of nutrition and supporting so cial
services throughout the project area.
b. In each project area, all target group eligible individuals
must be pemitted, and encouraged, to participate in the
nutri.tion and supporting social services offered by the
project. In no case maya project operated by specific
groups, such as churches, social organizations, homes for
the elderly, or senior housing developments, restrict
participation :in the project to its own membership, or other­wise
show discriminating preference for such membership.
c. Each recipient of award shall be responsible to the State
agency for all project activities throughout the project
area.
8.$ Project Council
a. Each recipient of an award must establish a project council
whose responsibility shall be to advise the project on all
matters relating to the delivery of nutrition and supporting
social services throughout the project area, to assist in
establishing project objectives, and to approve project
decisions as specified in e. below. If project participants,
with the concurrence of the project director, wish to
establish congregate meal site councils in addition to the
project council they may do so. Site councils are recommend­ed
for projects that cover a large geographic area and/or
have a large number of congregate meal sites.
b. Fomal procedural guidelines regarding the members, such as
method of selection, tenure, responsibilities, and reimburse­ment;
frequency of meetings; and other related c01IDcil
matters have been established by the State agency as below.
-10-
Section 8.5 Project Council (Continued)
c. The project council must be organized and activated within
thirty days after the date that meals are first served by
the project. However, where feasible, target group eligi­ble
individuals mould be involved in the preparation of
the project proposal so that initial decisions regarding
fees, menus and site selection, will renect potential
project participants' views.
d. Council membership
(1) More than one-half of the members shall be
nutrition project participants and each
congregate meal site will elect represen­tatives
to the project cOlmcil.
(2) The remainder of the project cOlmcil members
must be broadly representative of major
public and private agencies and organiza­tions
related to aging in the project area,
local government officials, and other
persons who are lmowledgeable and experienced
in the special, including nutritional, needs
of the elderly.
e. The project cOlmcil shall have approval authority over
decisions related to the:
(1) Setting of suggested fee schedules;
(2) Approval of general types of menus that
meet the nutrition standards set forth
in Section 9 of this booklet.
(3) Days and hours of project operations;
and
(4) Decor and furnishings of the meal site(s).
f. The project cOlmcil shall advise the project in all other
matters related to the delivery of nutrition and supporting
social services by the project including:
(1) Selection of paid staff and volunteers;
(2) Preparation of the project's operating
budget;
(3) Evaluation of project effectiveness
and aChievements of objectives;
(4) Existing and proposed services offered
by the project; and
(5) New congregate meal site selection.
-11-
Section 8.5 Project Council (Continued)
g. Decisions made in accord with e. above may vary among
congregate meal sites. However, all decisions of the
council must be in accord with all Federal and State
policies and take into consideration the project
budget.
8.6 Nutrition 'Project Personnel
a. The project must employ adequate numbers of qualified
staff to assure satisfactory conduct of the project.
Preference must be given to persons aged sixty or over
in the hiring for all staff positions, when other
qualifications are equal. Tn addition, project staff
must be, to the extent feasible, minority individuals
in numbers in proportion to minority project parti­cipants.
b. Such staff must include:
(1) Project director
The project director must be employed by,
and be responsible to the recipient of
the award, and must be empowered with
necessary authority to conduct the day­to-
day management and administrative
functions of the project. The director
must be hired on a full time basis and
meet the qualification standards as
required by the state agency.
(2) Other staff
The project design for the provision of
nutrition and supporting social services
will detennine the number and type of
additional pennanent or consultant staff
required by the project. Such required
staff includes that necessary for the
management of each congregate meal site,
fiscal and administrative management,
and clerical support. staff positions
will be required for the preparation and
delivery of foods and the provision of
supporting social services on~ when these
functions are not contracted or arranged
for through food vendors or existing
community social service resources.
-12-
Section 8.6 Nutrition Project Personnel (Continued)
c. Volunteer staff
To the max:imum extent feasible, the project must provide
opportlll1ities for vollll1tar,y participation of individuals
in all aspects of project operations. Such opportunities
must 1;>e made available to college and high school students,
older persons, and others.
8.7 Training
a. Each project will provide for the in-service training for
all staff engaged in the implementation of the project.
Such training must be designed to enhance staff performance
as related to the specific job responsibilities of each
staff member.
b. Training for the project director shall include attendance
at training programs provided by AoA/SRS.
8.8 Plan for the Project
a. Each project must serve primarily those target group
eligible individuals designated by the state agency in the
State Plan to be in greatest need. To achieve this goal,
the applicant agency must set forth in its proposal:
(1) A proposed geographic area in which
project services will be delivered
(see Section 8.1).
(2) An identification of the numbers and
location of those target group
eligible individuals detennined to
be in greatest need, with special
emphasis on those individuals whose
incane is below the poverty threshold
established by the Bureau of the Census
and minority group individuals who may
reside in the project area; and
(3) A program design for effective~ meet­ing
the nutrition and supporting social
service needs of such individuals.
b. No project providing only home delivered meals may be funded.
However, within congregate meal projects, home delivered
meals may be provided where necessar,y and feasible. In such
cases, it is recommended that not more than ten percent of
the meals be home delivered. All congregate meals sites and
programs must:
(1) Have an individual, either volunteer
or paid staff, who is responsible for
all activities at the site;
-13-
Section 8.8 Plan for the Project (Continued)
(2) Provide hot meals five or more days
each week, except in those sparsely
populated rural areas where a need
for an exception to this policy has
. been documented by the State agency
under Section 7.3b of this booklet.
(3) Be accessible to the target group
eligible individuals and be located
as close as possible, preferably with­in
walking distance, to concentrations
of such individuals;
(4) Be clean, neat, have adequate lighting
and ventilation, and meet all applica­ble
health, fire, safety, and sanita­tion
regulations;
(5) Have equipment, including tables and
chairs, that are sturdy and appropri­ate
for older persons. Tables should
be arranged to assure an atmosphere
appropriate for pleasant dining and
to encourage maximum socialization
among the participants. Adequate
aisle space should be provided between
tables to allow for persons with
canes or crutches to walk with ease,
and for use of wheelchairs;
(6) Provide for table settings that are
acceptable to the project council. If
disposable dinneIWare is used, it must
be of a quality that is sturdy to pre­vent
buckling and spillage, non-porous
to prevent leakage, and must be sani­tary
and attractive. Utensils, such
as forks, knives, and spoons, must like­wise
be of a quality to prevent melting,
bending, or splintering in nozmal use;
( 7) Provide for a separation between the
dining area and the food preparation
area where food is prepared and served
in the same facility;
(8) Be free of architectural barriers which
limit the participation of older persons;
(9) Be available, each day meals are served,
for a period of time adequate for all
participants to eat a leisurely meal;
-14-
Section 8.8 Plan for the Project (Continued)
(10) To the maximum extent feasible, have
available sufficient space and time
for the provision of needed supporting
social services;
(ll) Make provision for the celebration of
. special occasions of project participants;
and
(12) Make special provisions as necessary for
the service of meals to handicapped
individuals and :individuals with limited
mobility; and
(13) Be located :in a facility 'Where all elig­ible
individuals will feel free to visit.
Selection shall take :into consideration
the type and location of the facility so
as not to offend the cultural and ethnic
preferences of the eligible :individuals
in the project area.
c. Home delivered meals may be provided by the project only 'Where
necessary and feasible to meet the needs of eligible individ­uals
'Who are homebound because of temporary or permanent
physical or mental impairment.
8.9 Fees for Nutrition Services
a. Each nutrition project shall provide the opportunity for
individuals to make a contribution for nutrition services
received. Such contributions shall be based on a suggested
fee schedule, or a flat fee, established b.Y the project. Such
suggested fees will be established after taking into
consideration:
(1) Income ranges of project participants;
and
(2) Local cost of living standards.
b. Any fee or fee schedule established, must have the approval
of the project council.
c. 'lhe payment of fees, if any, shall be determined by each
participant according to his ability to pay. Participants
may be counseled during an interview to assist them in deter­mining
the amount th ey may wish to pay, if any, using the
established schedules to arrive at a suggested fee. Parti­cipants
may choose voluntarily to contribute amounts for
meals up to the total actual costs of raw food and meal
preparation.
-15-
Section 8.9 Fees for Nutrition Services (Continued)
d. No eligible individual shall be denied participation in the
nutrition program because of an inability to pay all or part
of the cost of the meals served. Suggested contribution fee
schedules shall in no case be used as a means test to deter­mine
the eligibility of individuals to participate in the
nutri~ion project.
e. The project must arrange for methods of receiving contrib­utions
from individuals in such a manner as not to differ­entiate
among individuals' contributions publicly.
f. Pro jects "Which provide home-delivered meals must seek to be
authorized to accept food coupons (food stamps) in lieu of
cash from homebound participants who are eligible to purchase
food coupons and who wish. to use the coupons for paying for
such meals. *App1ication for such authorization must be made
to the nearest Field Office of the Food and Nutrition Service
USDA. Because of a restriction in the Food Stamp Act of 1964,
as amended, projects thus authorized must agree not to accept
donated foods for meal preparation on behalf of homebolll1d
participants who purchase meals with food coupons. However,
donated foods may be accepted on behalf of other eligible
participants. In addition, donated foods may be combined with
other foods in preparing meals for home delivery, including
those meals to be purchased with coupons.
g. Procedures must be established by each project for the hand­ling
of monies collected to insure against loss, mishandling
or theft. Recipients of awards obliged by State or local law
to bond project staff who handle money shall do so.
8.10 Confidentiality
Each recipient of an award must assure that no personal information
obtained from an individual in conjunction with the project will
be disclosed in a form in which it is identified with him, without
written consent of the individua1(s) concerned. All project records
must be maintained in such a manner that confidentiality will not
be violated.
8.11 Project Records and Reports
a. Each nutrition project must establish and maintain a sYstem
for the collection of data that will accurately reflect project
program and financial operations.
* Food coupons cannot be accepted by the nutrition project as payment
for meals served at congregate meal sites because of restrictions in
the Food Stamp Act of 1964, as amended.
-16-
Section 8.11 Project Records and Reports (Continued)
b. 'lhese data must be made available for state and national
eValuation efforts.
c. From these data, the recipient of an award must complete
a Quarterly Nutrition Project Report as contained in
this bookle-& as well as all reports required by the SRS.
(see Chapter IV for a Summary of Required Nutrition
Program Reports.) Such reports must be sul:rnitted promptly
when due and failure to comply may affect subsequent fund­ing
of the project.
Section 9 Nutrition standards
9.1 Meal Planning
a. 'lhe special needs of the elderly must be considered in all
menu planning, food selection, and meal preparation.
b. Meal service should be designed so that hot food is avail­able
for at least one-half hour after serving time begins
to enable individuals who may not arrive at a specific time
to participate in the hot meal.
c. Menus must be planned for a minimum of four weeks, approved
and certified in writing by the dietitian/nutritionist whose
services are utilized by the project, and submitted to the
State agency for review at least two weeks prior to the
initial use of the menu. For purposes of audit, the State
agency and the projects shall keep on file copies of the
certified menus as used, for a period of one year. Menus
must be prepared on menu forms, a copy of which is contained
at the end of this section.
d. All certified menus must be posted in a conspicuous location
in each congregate meal site as well as at each place of
food preparation. The certified menus must be adhered to
subject to seasonal availabilit,y of food items.
e. The food items within the meat, vegetable and fruit, and
dessert groups must be different for the same days of each
week, thus providing a variety of foods and nutrients.
f. Project menus must follow the meal pattem set forth below.
Each group, or its altemate, makes a special contribution
toward the objective of providing at least one balanced meal
daily.
(1) Meal or meal altemate group
'lhree ounces cooked edible portion of meat,
fish, fowl, luncheon meats, eggs, or cheese.
Meat altemates may be used occasionally for
variety and may include cooked dried beans
or peas, nuts, or nut-butter (peanut butter
and others).
-17-
Section 9.1 Meal Planning (Continued)
(2) Vegetables and fruit group
Two, one-half cup servings. All vege­tables
and full strength vegetable juices,
all fruits and full strength fruit juices•
.Note: Rice, spaghetti, macaroni
and noodles are not vege­tables.
See (3) below.
Fruit used as a dessert
should not be counted
toward the suggested two
servings of vegetables
and fruits.
(3) Bread or bread alternate group
One serving. Enriched or w:b.olegrain
bread, biscuits, muffins, rolls,
sandwich buns, cornbread and other hot
breads.
Bread alternates may include enriched or
whole-grain cereals or cereal products
such as spaghetti, macaroni, dumplings,
pancakes, and waffles.
Where available, the following additional
variation may be substituted for the bread
requirements: ufi, tanniers, yams, plain­tains,
and sweet potatoes.
(4) Butter or fortified margarine
One teaspoon
(5) Dessert group
One, one-half cup serving. All fruit, full
strenth fruit juices, and simple desserts such
as puddings, gelatins desserts, ice cream, ice
milk and sherbert; cake, pie, cookies, and
similar foods are also included.
Note: Cakes, cookies, and pie crusts
made with enriched or whole
grain flour or meal are more
nutritious than those made with
unenriched flour or meal.
-18-
section 9.1 Meal Planning (Continued)
(6) Milk group
One-half pint. Fortified whole, skim, or low fat
milk, flavored whole or fortified milk, buttermilk,
and cheese.
Note: The inability of a project to
obtain a supply of milk on a
continuing basis shall not bar
it from participating in the
program. In such cases the
state agency may approve the
service of meals without fresh
milk when an equivalent amount
of canned, whole dry, or non­fat
dry milk is used in the
preparation of the components
of the meal.
(7) Optional beverages
Coffee, tea, decaffeinated beverages, cambric tea,
soft drinks, and fruit flavored drinks may be used.
(8 )
(9)
Other foods may be added to the meal to provide
personal satisfaction and additional nutrition.
Vitamins and/or mineral supplements may not be
provided with nutrition project funds. ---
g. Where feasible and appropriate, special menus shall be avail­able
to individuals participating in the program.
(1) Special menus may be provided for health reasons.
(a) A written order will be on record
for each individual on a special
diet, and the order must be re­viewed
periodically (minimum
annually) with the pro ject
participant's physician.
(b) Special diet menus must be plan­ned
and prepared under the super­vision
of a qualified registered
dietitian.
(c) A current diet manual, approved by
the nutritionist or dietitian on
the State agency staff, will be
supplied by the State agency to
each project.
-19-
Section 9.1 Meal Pla:rming (Continued)
g. (2) Religious, ethnic, cultural, or regional dietary
requirements or preferences of a major portion of
the group of participants at a congregate meal
site shall be reflected in the meals served.
Where feasible, individual dietary needs may
also be met. However, the project is not required
to do so on an individual basis.
9.2 Food Procurement
a. All food procurement must be transacted in accord with
Sections 6 and 13 of this booklet.
b. The state agency shall, on a regular basis, make recip­ients
of awards aware of those plentiful foods designated
by the Secretary of Agriculture as being in abundance,
either nationally or locally. 'lhe state agency shall
establish procedures to assure that recipients of awards,
to the extent feasible and practical, reflect such abundant
foods in menu planning.
c. Projects participating in the USDA Food Distribution
Program in accordance with Section 9.5c of this booklet
must request donated foods sufficiently in advance to
insure delivery for use in the menus for which they
were ordered.
9.3 Food Preparation and Delivery
a. When a project is designed to serve meals at more than one
congregate meal site, (bearing in mind the number of meals
served) efforts should be made to have all meals prepared
at one facility and then delivered to the various sites.
For the most economical delivery of meals, the duplication
in staffing and equipping food preparation facilities at
more than one congregate meal site should be minimized.
(see Section 11.2b (9) of this booklet which establishes a
limit on capital asset expenditures for each project.)
b. state and local fire, health, sanitation, and safety
regulations applicable to the particular types of food
preparation and meal delivery system used by the project
must be adhered to in all stages of food service operations.
In all cases, periodic checks must be made for foreign
content in the food either by the appropriate State or local
health officials or by qualified individuals engaged by the
state agency to conduct such checks.
c. All staff working in the preparation of food shall be under
the supervision of a person who inll insure the application
of hygienic techniques and practices in food handling prepar­ation
and service. This supervisory person shall consult
with the project nutritionist/dietitian for advice and consulta­tion
as necessary.
-20-
Section 9.3 Food Preparation and Delivery (Continued)
d. Tested quality recipes, adjusted to yield the number of
servings needed, must be used to achieve the consistent
and desirable quality and quantity of meals.
e. All foods must be prepared and served in a manner to
present optimum flavor and app:m"BIlce, while retaining
nutrients and food value.
f. Home delivered meals
(1) Projects providing home delivered meals,
where necessary and feasible, may use
various methods of delivery, however,
all food preparation standards set forth
in this section must be met.
(2) More than one meal may be deliverd for
each day I S consumption, providing that
proper storage and heating facilities
are available in the home, and that the
project participant is able to consume
the second meal either by himself or
with available assistance.
9.4 Food Contributions
a. All foods contributed to the project must meet those
standards of quality, sanitation and safety that apply to
foods that are purchased commercially by the project.
b. Foods prepared or canned in the home may not be used in
meals provided by the projects financed under Title Vil.
Only commercially prepared or canned foods may be used.
9.5 USDA Food Assistance Programs
a. In every case, the state agency shall assure that recipients
of awards under Title Vil shall take such steps as necessary
to assure that the maximum number of older persons within the
project area benefit from the USDA food assistance programs
as members of households certified for such assistance under
USDA regulations. Also see Section 6 of this booklet.
b. With regard to such programs, each recipient of an award
shall:
(1) Provide the opportunity for, and assist, all
project participants who desire food coupons
or donated foods to apply for such assistance;
(2) Provide the opportunity for individuals receiving
home-delivered meals to use food coupons as their
contribution toward the cost of the meal; and
-21-
Section 9.5 USDA Food Assistance Program (Continued)
b. (3) Assure that all provisions related to the use and
handling of food coupons as prescribed by the state
and local agency authorized to operate these pro­grams,
will be met.
c. The State agency shall encourage recipients of awards
under" Tit~e VII to apply to the Department of Education for
participation as eligible institutions in the USDA Food
Distribution Program. * Foods received through this program
are not to be considered as part of the project award.
d. Recipients of awards under Title VII which receive donated
foods as institutions should consider the feasibility of
entering into written contracts with corrnnercial or insti­tutional
facilities to convert the donated foods into more
convenient or usable end-products.iH~
* Public and nonprofit private feeding programs which provide meals for
the elderly in group settings or for home delivery may qualify as
eligible institutions under USDA regulatlons for food distribution
(7 CFR Part 250). Eligibility is detennined by State distributing
agencies, which provide donated foods under written agreements with
institutions. Institutions may employ a corrnnercial kitchen, food
service management oompany, or other catering service in preparing
meals containing donated foods, provided this service is contracted
for in accordance with USDA regulations for food distribution.
-l~ Procedures for such food processing contracts may be obtained from
the State Department of Education.
-22-
~liUJl:l,; I IVlI:NU t'l...Ai\l - I~U I tilIIU" ·>'\UI.l:\~IVI rvti I nl: l:L.LJl:tiL. r ,------...."
,';::::,);,RED BY
-
MONTH, DATE, DAY
MEAT OR ALTERNATE
3 OZ. COOKED EDIBLE
PORTION .
VEGETABLES & FRUITS
2,1/2 CUP SERVINGS --------------------_. ._-------------------_. ----------------------- ----------------------- ----------------------
rI - j i
BREAD OR ALTERNATE
1 SERVING
I
BUTIER OR FORTIFIED
MARGARINE
1 TEASPOON , .
i
DESSERT
1/2 CUP
,
MILK
1/2 PINT
; BEVERAGE (OPTIONAL)
i
~ ... -_.__ ..._- _.L-..___
\ 'J. 0 r CCN~" :::'GATE MeALS .. _ PROJECT TITLE
~n, OF HO\~c DELIVERED MEALS PROJECT SITE _
PROJECT DIRECTOR _
DATE . .
Di ETITi Ai-,JNUTR IT\O~~IST
-.-~_._--- ~-_ .._--- - ._-- ~ -------- - -._._- ~ ..- - -~,---~------_.-
Section 10 Supporting Social Services
10.1 General.
a. Project participants should be interviewed by a staff person
within two weeks after they have become active in the project
to obtain certain infonnation for the project files. Such
information shall include the participant I s name, address,
telephone number, person to notify in an emergency, doctor's
name, physical problems the project staff should be aware of,
and any other pertinent infonnation needed by the project.
In addi.tion, during this interview, a detennination shall be
made as to the supporting social services that the project
participant needs.
b. In order to assure that the maximum of hard-to-reach, isolated,
and withdrawn eligible individuals throughout the project area
have the opportunity to participate in the project, recipients
of awards must provide for an ongoing vutreach service to be
provided from each congregate meal site.
c. Recipients of awards must, in addition to outreach, provide
additional supporting services to the extent that such ser­vices
are needed and are not already available and accessible
to the individuals participating in the nutrition project,
both at congregate meal settings and through home delivered
meals. During the initial interview with the project parti­cipant
a determination should be made as to the supporting
social services that the project participant needs. Such ser­vices
may include:
(1) Transportation of individuals and personal
escort services to and from the congregate
meal sites;
(2) Infonnation and referral services;
(3) Health and lvelfare counseling services;
(4) Nutrition education;
(5) Shopping assistance; and
(6) Recreation activities incidental to the
project.
d. Normally, not more than twenty percent of the Title VII Federal
funds shall be used for the provision of the supporting social
services prescribed in b. and c. above, and only these services
may be supported with Title VII funds.
-24-
Section 10.1 General (Continued)
e. Outreach, transportation, and escort services must be in
place and ready to operate prior to the actual deliver,y of
nutrition services. The supporting social services pre­scribed
in c. above, must be developed within thirty days
after nutrition services have been initiated.
f. other'social services, such as those provided for by
Titles I and XYI, of the Social Security Act, may be made
available to the project participants; however, only those
listed in Sections b. and c. above may be provided for
through Title VII funds.
10.2 Supporting Social Services Standards
a. For the purpose of this progrC'.Jll, all supporting social
services financed with Title VII funds must meet the
standards listed below. In every case, the outreach,
transportation, and escort services provided as part
of the project, whether or not financed with Title VII
funds, must also meet these standards.
b. Supporting social services standards including the
following:
(1) Outreach
(a) Outreach service means an activity
designed to seek out and identif.y,
on an ongoing basis, the maximum
number of the hard-to-reach, iso­lated
and withdrawn target group
eligible individuals throughout the
project area in greatest need of
nutrition and supporting social
services, and to provide the oppor­ttmity
for them to participate in
the project.
(b) Such services must provide for:
(1) the designation of a project
staff person to be responsible for
the conduct of this activity from
each congregate meal site; (ii)
adequate numbers of outreach workers
knowledgeable in dealing with and
identif.ying needs of older persons;
(iii) the use of a variety of methods
that will assure a systematic cover­age
of' the project area and contact
with the maximum possible number of
older persons; and (iv) arranging
for referral and follow-up of individ­uals
fotmd to be in need of services.
-25-
Section 10.2 SUpporting Social Services Standards (Continued)
(2) Transportation service
(a) Transportation service means an
activity designed to transport
older persons to and from congre­gate
meal sites so that the nutri-
.tion and supporting services will
be access ible to those target group
eligible individuals living wi.thin
the project area who, because of a
lack of mobility, would otherwise
be unable to participate in the
nutrition project.
(b) Such service must provide for:
(i) the designation of a project
staff person to be responsible for
the conduct of this activity; (ii)
regular scheduling and routing design­ed
to assure that those individuals
in greatest need of transportation
receive the services; and (iii) the
assurance that all modes of transpor­tation
provided are safe, adapted to
the special needs of older persons,
and comply with all State and local
regulations pertaining to such service.
(3) Escort Service
(a) Escort service means an activity design­ed
to assist the maximum number of
target group eligible individuals who
are physically or mentally handicapped
and require personal assistance and
special modes of transportation in
order to participate in the nutrition
project.
(b) SUch service must provide for:
(i) the designation of a project staff
person to be responsible for the conduct
of this activity; (ii) adequate numbers
of escort workers knowledgeable in deal­ing
with and assisting older persons;
and (iii) the assurance that the service
is provided regularly to those who need
it in order to participate in the nutri­tion
project.
-26-
Section 10.2 Supporting Social Services Standards (Continued)
(4) Information and Referral Service
(a) Information and referral service means
an activity designed to provide the
target group eligible individuals with
current information of referral to, all
appropriate services to meet their needs.
(b) Such service must provide for:
(i) adequate staff knowledgeable and
skilled in dealing with, and assessing
the needs of older persons, and assisting
such persons obtain needed services; (ii)
the service to be accessible to older
persons, either by phone or person-to­person
contact at the congregate meal
sites; (iii) follow-up on the referrals
made; and (iv) adequate record-keeping
concerning requests for assistance, ser­vices
rendered, and referrals made.
(5) Health and Welfare Counseling Service
(a)
(b)
Health and welfare counseling means an
activity designed to assure that project
participants have available a service
which will assist them in dealing with
the problems and stresses which interfere
with normal health and social functioning
through person-to-person assistance by
trained counselors.
Such services must provide for:
(i) adequate staff trained and skilled in
counseling older persons; (ii) the
counseling to be done in a setting that
provides privacy for the older person
seeking assistance; (iii) the service to
be available regularly and at times
convenient to project participants; and
(iv) the maintenance of adequate records
concerning the request for assistance and
the service rendered.
(6) Recreation Activity
(a) Recreation means those activities designed
to foster the health and social well-being
of project participants through social inter­action
and the satisfying use of free time.
-27-
Section 10.2 Supporting Social Services Standards (Continued)
(b) Such activities must provide for:
(i) the provision of those activities
which reflect the preferences of the
majority of the project participants;
and (ii) the availability of adequate
space and supplies necessary for the
. effective conduct of the activity.
(7) Nutrition Education
(a ) Nutrition education means a formal
program of regularly scheduled meetings
to make available facts about the kinds
and amounts of foods that are required
to meet one I s daily nutritional needs.
It shall be an accompanying feature of
the meal program, with close coordination
between the two components to improve
the nutritional intake of older persons
through better eating habits by making
them aware of the relative nutritional
value of different food groups.
(b) Such activity must provide for:
(i) visual infonnation to be available
on a continuing basis; and (ii) regularly
scheduled meetings conducted in an
appropriate manner to meet the needs of
the participants.
(8) Shopping Assistance
(a) Shopping assistance means making help
available to project participants in
getting to-and-from food markets and
in the selection of proper food items
so as to improve their nutritional
intake.
(b) Such activity must provide for:
(i) the service to be regularly avail­able;
(ii) the service to be available
at a time convenient to older persons;
and (iii) the opportunity to shop at a
food maIket of the individuals choice.
10.3 Utilization of Existing Resources
a. To the maximum extent feasible, the project shall make ever.!
effort to utilize the existing social service resources pro­vided
by agencies such as health and mental health, public
assistance, medicaid, social services, rehabilitation,
-28-
Section 10.3 Utilization of Existing Resources (Continued)
education, economic opportunity, legal services, food and
agriculture agencies, and Title III Community Projects, to
provide the supporting social services prescribed in
Sections 10.1 and 10.2 above
b. Such efforts shall include joint planning, sharing of infor­mation,
and negotiation of agreements for joint funding and
operation of programs for the elderly. 'lhese efforts shall
be coordinated with State agency acitivities on behalf of
the aging.
c. All supporting social services provided by the project shall
be interrelated and coordinated with each other to assure
maximum benefit to individuals needing such services. SUch
services shall also be coordinated vdth all other related
social services throughout the project area to assure maximum
benefit to individuals needing such services. SUch services
shall also be coordinated with all other related social
services throughout the project area to assure maximum access
to and utilization by project participants.
11 Project Costs Policy
11.1 Principles for Determining Costs
a. General
Cost determination for those activities undertaken by
the state agency under Section 705 of the Older Americans
Act must be in conformance vdth the principles and stan­dards
set forth in IlA Guide for State Government Agencies
Establishing Cost Allocation Plans and Indirect Cost
Rates for Grants and Contracts with the Department of
Health, Education, and Welfare. 11 (U.S. DREW OASC-6)
The major provisions of this IlGuide ll as well as other
policies concerning the allowability of costs are contain­ed
in this section.
b. Factors affecting allowable costs
To be allowable under Section 705 of the Older Americans
Act, all costs must meet the following general require­ments:
(1) Be necessary and reasonable for the proper
and efficient conduct of Title VII nutri­tion
projects;
(2) Conform to any limitations or exclusions
set forth in this booklet, Federal laws,
or other governing limitations as to types
or amounts of cost items;
-29-
Section 11.1 Principles for Determining Costs (Continued)
(3) Be accorded consistent treatment through
application of generally accepted accounting
principles appropriate to the circumstances;
(4) Not be allocable to or included as a cost of
any other federally financed program in either
. the current or a prior period; and
(5) Be net of all applicable credits to the cost.
(a) Applicable credits refer to those
receipts or reductions of expendi­ture
type transactions which reduce
or offset expense items allocable to
an activity as a direct or indirect
cost. Examples of such transactions
are: Purchase discounts; rebates or
allowances; recoveries or indemnities
on losses; sale of publication or
equipment; certain types of income
(see section ll.lf) and adjustments
of overpayments or erroneous changes.
(b) Applicable credits may also arise when
Feder8~ funds are received or are avail­able
from sources other than the Title
VII program to finance operations on
capital items of the recipient of award.
This includes costs arising from the use
or depreciation of items donated or
financed by the Federal goverrunent to
fulfill matching requirements under
another grant program. These types of
credits should likewise be used to
reduce related expenditures in deter­mining
the rates or amounts applicable
to Title VII projects.
c. Composition of Costs
(1) Total cost
The total cost is comprised of the allowable direct
costs incident to the conduct of Title VII project
activities plus the allocable portion of any allow­able
indirect costs, less applicable credits.
(2) Classification of costs
There is no universal rule for classifying certain
costs as either direct or indirect under ever,y account­ing
system. A cost may be direct with respect to some
specific function or service, but indirect with respect
to the activity or other cost objective. It is impor­tant,
therefore, that each item of cost be treated con­sistently
either as a direct or indirect cost. Specific
-30-
Section 11.1 Principles for Deter.mining Costs (Continued)
guidelines for detenn:in:ing direct and indirect
costs allocable under Title VII nutrition pro­jects
are provided in the Section ll.ld and e
which follow.
d. Direct Costs
Direct costs are those that can be identified specifically
with project operations.
e. Indirect Costs
(1) Indirect costs are those which cannot be
attributed specifically to the project, but
which are generated by the project as well
as by other programs administered by the
recipient of award. Examples of indirect
costs are:
(a) General and adm:inistrative expenses
of the overall recipient of award
organization;
(b) Operation and ma:intenance of build­:
ings and equipment, such as telephone
switchboard expenses, by the overall
recipient of award organization; and
(c) Departmental administration, such as
centralized payroll and accounting
services.
(2) If a Title VII project is the only program
activity in which the recipient of award is
engaged, the project could incur no indirect
costs. ---
(3) Jh theory, all such costs might be charged direct­ly;
however, practical difficulties preclude such
an approach. 1herefore, the DHEW provides for
reimbursement of these costs through the mechanism
of an indirect cost rate. An indirect cost rate is
simply a device for~tennining fairly and convenient­ly,
within the bOl.mdaries of sound administrative
pr:inciples, what proportion of such general expenses
each program should bear. Specifically, it is the
ratio between the total indirect expenses and some
direct cost base, commonly either direct salaries
and wages or total direct costs. The indirect cost
rate is therefore the end product of a series of
cost apporti onments which distribute costs jointly
benefiting two or more programs :in some reasonable
relation to the benefits derived.
-31-
Section 11.1 Principles for Determining Cost (Continued)
(4) In those instances where the IHEW has negoti­ated
an indirect cost rate with an agency or
institution which also is a recipient of award
under Title VII, the State agency may rely on
the conditions of the agreement which establish­ed
the rate. Such reliance must be limited to
> the extent that the agreement applies to the
Title VII project.
(5) In those cases in which there is no existing
indirect cost rate which has been negotiated
between the recipient of award and the DREW,
an indirect cost rate plan may be developed.
If the recipient of award is a local public
agency, this indirect cost rate must be
negotJ.ated directly with the DREW in accord
with the Off'ice of Management and Budget
Circular A-87 and the "Guide for Local
Government Agencies Establishing Cost Allo­cation
Plans and Indirect Cost Rates for
Grants or Contracts with the Federal Govern­ment."
If the recipient of award is other
than a local public agency, it may negotiate
an indirect cost rate with the state agency,
which will seek approval from IHEW.
(6) The basis to be used by the project in
detennining the amount of indirect cost
claimed shall be set forth in the notifica­tion
of award.
(7) Indirect costs incurred by other organizations
in support of project activities are al~owable
only if the project is charged for, and pays
for, the service provided by the af'fil~ated
institution. (If such costs are "in-kind"
the recipient of award would not "pay" for them).
f. Project income (credits)
(1) All project income must be accounted for.
(Income accrued by individuals participating in
a project or by groups using project facilities
is not considered project income)
(2) Royalties received from copyr~hts and patents
dur:L"lg the project period shall be retained by
the recipient 01' award and, in accordance with
the award agreement, be either added to the funds
already conunitted to the program or deducted from
total pro ject costs for the purpose or detennining
the net cost on which the Federal share or costs
will be based. After termination or completion
-32-
Section 11.1 Principles for Determining Cost (Continued)
of the grant, the Federal share of royalties m
excess 01- $200 received annually shall be returned
to the SRS in the absence of other specific
agreements between the SRS and the State agency.
The Federal share of royalties shall be computed
on the same ratio basis as the Federal share of the
-total project cost.
0) Public agency recipients of awards must record the
receipt and expenditure of revenues (such as taxes,
special assesments, levies, fines, etc.) as a part
of project transactions when revenues are specifically
eannarked for a project in accordance with awaro.
agreem.ents.
(4) All other anticipated project income, including
contributions for meals, to be earned during the
project period shall be retained by the recipient
of award. The Federal share of such income must be
awarded to the project on a notification of award
form. .An estimate of income to be accrued should be
made prior to the budget year, and be included in the
original project budget for initial award by the State
agency. In such cases over estimates of project income
will reduce the project budget and may require a supple­mental
award. Underestimates will provide a surplus
for the project which may be carried forward to a
subsequent year.
11.2 Allowable Project Costs
a. General
'!he standards listed below are set forth to assist the applicant
to detennine the allowability of selected items of cost for the
conduct of nutrition projects. These standards will apply irres­pective
of whether a particular item. of cost is treated as direct
or indirect cost. Failure to mention a particular item. of cost
is not intended to imply that it is either allowable or unallow­able;
rather, determination of a110wability in each case will
be based on the standards provided for similar or related items
of cost.
b. Allowab1eCosts
(1) Accounting
The cost of establishing and maintaining accounting
and other information systems required for the
management of the project is allowable. This includes
costs incurred by central service agencies for these
purposes. The cost of maintaining central accounting
records required for overall local government pur­poses,
such as appropriation and fund accounts by the
Treasurer, Comptroller or similar officials, is con­sidered
to be a general expense of government and is
not allowable.
-33-
Section 11.2 Allowable Project Costs (Continued)
(2) Advertising
Advertising media include newspapers magazines,
radio and television programs, direct mail, and
trade papers. 'lhe advertising costs allol-Table
are those which are solely for:
(a) Recruitment of personnel required
for the project;
(b) Solicitation of bids for the pro­curement
of goods and services
required;
(c) Disposal of scrap or surplus mater­ials
acquired in the performance of
the award agreement; and
(d) Other purposes specifically provided
for in the award agreement.
(3) Audit service
The cost of audits necessar,y for the administration
and management of the project is allowable.
(4) Automatic data processing
The cost of data processing services to projects is
allowable. This cost m~ include rental of equipment
or depreciation on equipment owed by the recipient
of award. The acquisition of equipment, whether by
outright purchase, rental-purchase agreement, or
other method of purchase, is allowable only upon
specific prior approval of the SRS.
(5) Bonding
Cost of premiums on bands covering employees who
handle project funds are allowable.
(6) Budgeting
Costs incurred for the development, preparation,
presentation, and execution of budgets are allow­able.
Costs for services of a central local budget
office are generally not allowable since these are
costs of general goverrunent. However, where employees
of the central budget office actively participate in
the recipient of award agency I s budget process, the
cost of identifiable services is allowable.
-34-
Section 11.2 Allowable Project Costs (Continued)
( 7) Building lease management
The administrative cost for lease management
which includes review of lease proposals,
maintenance of a list of available property
for lease, and related activities, is allowable.
(8) Building and space and related facilities
'!he cost of space in privately or publicl:r owned
buildings used for benefit of the project is
allowable subject to the conditions stated below.
The total cost of space, whether in a pr.i.vately
or publicly owned building, may not exceed the
rental cost of comparable space and facilities in
a privately owned building in the same locality.
The cost of space procured for project usage may
not be charged to the project for periods of non­occupancy.
(a) Rental cost. The rental cost of space
in a privately owned building is allow­able.
A rental cost for idle or excess
facilities, or a rental cost for land,
separate from the cost of a facility,
is not allowable.
(b) Maintenance and operation. The costs of
utilities, insurance, securit.1, jani­torial
services, elevator service, up­keep
of grounds, nonnal repairs and
alterations and the like, are allowable
to the extent that they are not other­wise
included in rental or other charges
for space.
(c) Depreciation and use allol-lances on build...
ings owned by the recipient of award or
loaned for use in the project. These
costs are allow·able as provided in
Section 1l.2b (14) below.
(d) Occupancy of space under rental-purchase
or lease with option-to-purchase agreement.
The cost of space procured under such
arrangements is allowable only when speci­fically
approved by the SRS.
-35-
Section 11.2 Allowable Project Costs (Continued)
(9) Capital Expenditures (Facilities and Equipment)
(a) The costs of capital assets including land,
building, and equipment* are allowable up
to ten percent of the total cost of the
project for the budget year when specifically
approved by the State agency. When there is
no reasonable substitute for the purchase of
capital assets in excess of ten percent of the
project budget, an exception can be made by the
SRS. Repairs, improvements and renovations
which increase the value or use of a capital
asset are allowable up to five percent of the
total project budget. Exception to the five
percent limitation can be approved by the SRS
where there is no reasonable alternative to
such capital expenditures.
(b) The limit on purchase and renovation of capital
assets is established to encourage the project
applicant to conduct cost analysis of the various
options available in the delivery of nutrition
and supporting social services. The type of physi­cal
facility and equipment needed will depend upon
the method of delivery, such as on-site food prepara­
·tion versus purchase of prepared food from vendors,
or the provision of social services at a central
site versus transporting project participants to
several service sites. Long term cost benefits
derived from the various options must be calculated
to determine the most economical and feasible
method of capital investment.
( c ) When an asset acquired with Title VII funds is
(1) sold, (2) no longer available for use in the
project, or (3) used for purposes not authorized by
the award and has a residual market value of $500
or more, then Federal government equity in the assets
must be refunded in the same proportion as Federal
participation in its cost.
(10) Central store
The cost of maintaining and operating a central
organization for supplies, equipment, and materials
used either directly or indirectly for Title VII
project activities is allowable.
~l- Capital asset equipment is defined as equipment valued at $100 or more per
item.
-36-
Section 11.2 Allowable Project Costs (Continued)
(11) Communications
(a) Communications and Utilities
Communications costs incurred for
telephone calls or services, tele­graphs,
teletype service, wide area
telephone service (WATS), centrex,
telepak (tie lines), postage, messen­ger
service and similar expenses are
allowable.
(b) Utilities
The cost of water, heat, gas and
electricity, lihere such costs are
not included in rent, are allowable.
(12) Compensation for Personal Services
(a) General
Compensation for personal services
including all remuneration, paid
currently or accrued, for services
rendered during the period of perfor­mance
under the award agreement,
including but not necessarily limited
to wages, salaries, and supplementary
compensation is allowable to the extent
that total compensation for individual
employees: (i) is reasonable for the
service rendered; (ii) follows an
appointment made :in accordance with
State or local government laws and
rules where applicable; and (iii) is
detennined and supported as provided
herein.
(b) Reasonableness of Compensation
Compensation for employees engaged in
project activities will be considered
reasonable to the extent that it is
consistent with that paid for similar
work in other activities of the recipient.
In cases where the kinds of employees
required for the project activities of
the recipient of award are not found in
the other activities of the project, com­pensation
'Will be considered reasonable to
the extent that it is comparable to that
paid for similar work :in the labor market
-37-
Section 11.2 Allowable Project Costs (Continued)
in which the employing agency competes for
the kinds of employees involved. Compensa­tion
surveys, providing data representative
of the labor market involved, will be an
acceptable basis for evaluating reasonable­ness.
(c) Payroll and distribution of time
Amounts charged to the project for personal
services, regardless of whether treated as
direct or indirect costs will be based on
payrolls documented and approved in accord­ance
with generally accepted practice of the
recipient of award. Payroll must be support­ed
by time and attendance or equivalent
records for individual employees. Salaries
and wages of employees chargeable to more than
one program of the recipient of award or
other cost objectives will be supported by
appropriate time distribution records. The
method used should produce an equitable dis­tribution
of' time and effort.
(d) Consultants
Reasonable and necessary consultant costs for
essential services that cannot be provided by
persons receiving salary support under the
award, in accordance with State policies, may
be claimed, however, consultant fees may not
be paid to U. S. government employees.
(13) Council of the project
Cost incurred by the project in obtaining assistance from
the project council including council member out-of-pocket
expenditures, in accordance with the regulations and this
booklet.
(14) Depreciation and use allowance
(a) Recipients of award may claim costs for the
use of buildings, capital improvements, and
equipment through depreciation. However, a
combination of the two methods may not be
used in connnection with a single class of
fixed assets, owned by a single contributor.
(Fixed assets are buildings and equipment.)
-38-
Section 11.2 Allowable Project Costs (ContL~ued)
(b) The computation of depreciation or use
allowance will be based on the most
recent acquistion cost.* Where actual
cost records have not been maintained,
a reasonable estimate of this acquisi­tion
cost m~ be used in the computation.
This computation must exclude the cost
of land. Depreciation or a use allow­ance
on idle or excess facilities is
not allowable. The cost of any portion
of the cost of buildings or equipment
donated or borne directly or indirectly
by the Federal government, irrespective
of where title was originally vested or
where it presently resides, may not be
claimed except as provided in Section
12.2d of this booklet.
(c) Where the depreciation method is
followed, adequate property records
must be maintained, and any generally
accepted method of computing deprecia­tion
must be consistently applied for
any specific asset or class of assets
owned by a single contributor. An
owner m~ not alter any depreciation
method used prior to Federal support,
except when applYing "use allowance"
computations to fully depreciated items
(see (e) below).
(d) Use allowances, in lieu of deprecia­tion,
may be used to value buildings,
capital improvements, and equipment.
'!he use allowance for buildings and
improvements may be computed at an
annual rate not exceeding two percent
of the most recent acquisition cost.
The use allowance for, equipment (ex-cluding
items properly capitalized as building
cost) will be computed at an annual
rate not exceeding six and two-thirds
percent of acquisition cost of usable
equipment. '!hese use allowances may
be used indefinitely, as long as the
building, improvement, or equipment
has economic usefulness.
* If an item of property was acquired with no cost to the present owner,
i.e., it was donated, computation would be based on the donor's cost
less depreciation or the current market price of similar property,
whichever is less.
-39-
Section 11.2 Allowable Project Costs (Continued)
(e) A usage value may be claimed for an asset
which is considered fulJ.vr' depreciated
(under the method described in (c) pre­ceding
page) but which still has economic
usefulness to the project (i.e., residual
value). 11'1i8 value must be claimed in
accordance with the use allowance computa­tion
as described in (d) preceding page.
All buildings must be valued by a single
method and each class of equipment valued
by a single method, either depreciation
of use allowance.
(15) Disbursing Service
The cost of disbursing project funds by the treasurer
or other designated officer is allowable. Disbursing
services cover the processing of checks or warrants,
from preparation to redemption, including the necessary
records of accountability and reconciliation of such
records with related cash accounts.
(16) Employee Fringe Benefits
Costs identified below are allowable to the extent that
total compensation for employees is reasonable, as
defined in Section 11.2b(12)(b).
(a) Elnployee benefits in the fom of a
regular compensation paid to employ­ees
during periods of authorized
absences from the job, such as for
annual leave, sick leave, court leave,
military leave, and the like, are
allowable if they are provided pursuant
to an approved leave system; and the
cost thereof is equitably allocated to
the project and to other activities.
(b) Elnployee benefits in the fom of employ­er's
contribution or expenses for social
security, employees I life and health
:insurance plans, unemployment insurance,
. workman I s compensation insurance, pension
plans, severance pay, and the like, are
allowable provided such benefits are
granted under approved plans and are
distributed equitably to the project and
to other activities.
-1+0-
Section 11.2 Allowable Project Costs (Continued)
(17) Employee 1{orale, Health, and Welfare Costs
The cost of health or first-aid clinics
and/or infirmaries, recreational facilities,
employees' counseling services, employee
'information publications, and any related
expenses incurred in accordance with general
State policy, are allowable. Income gener­ated
from any of these activities will be
offset against expenses.
(18) E:xhibits
Costs of exhibits relating specifically to
the project are allowable.
(19) Insurance
(a) Costs of insurance required, or approved
and maintained pursuant to project activi­ties,
are allowable.
(b) Cos ts of insurance in conue ction with the
general conduct of activities are allow­able
subject ot the following limitations:
(i) Types and extent and cost of
coverage will be in accordance
with general policy of the
recipient of award and sotmd
business practice.
(ii) Costs of insurance or of con­tributions
to any reserve cov­ering
the risk of, loss of, or
damage to, Federal government
property are unallowable except
to the extent that the SRS has
specifically required or approved
such costs.
(c) Contributions to a reserve for a self­insurance
program approved by the State
agency are allowable to the extent that the
type of coverage, extent of coverage, rates,
and premiums would have been allowed had
insurance been purchased to cover the risk.
-41-
Section 11.2 Allowable Project Costs (Continued)
(20) Legal expenses
'!he cost of legal expenses required :in the adm:inis­tration
of projects is allowable. legal services
furnished by the chief legal officer of the recip-
'ient of awani organization or his staff solely for
the purpose of discharg:ing his general responsibil­ities
as legal officer, beyond project operations,
are not allowable. Legal expenses for the prosecu­tion
of claims aga:inst the Federal government are
unallowable.
(21) Ma:intenance and Repair
Costs :incurred for necessary ma:intenance, repair,
or upkeep of property which neither add to the
pennanent value of the property nor appreciably
prolong its :intended life, but keep it :in an effi­cient
operat:ing condition are allowable.
(22) Management Studies
The cost of management studies to improve the
effectiveness and efficiency for on-going pro­grams
is allm-ro.ble only when authorized by SRS.
(23) l1aterials and Supplies and Equipment
The cost of materials and supplies and non-capital
asset equipment (equipment cost:ing less than $100)
necessary to carry out the project is allowable.
Purchases made specifically for the project should
be charged thereto at their actual prices after
deduct:ing all cash discounts, trade discounts, tax
discounts, rebates and allowances. Withdrawal
from general stores or stockrooms should be charged
at cost under any recognized method of pric:ing,
consistently applied. Incoming transportation
charges are a proper part of material cost. '!be
cost of ma:inta:ining and operat:ing a central stores
(purchasing) organization for supplies and materials
used either directly or :indirectly for project
programs is allowable.
(24) Memberships, Subscriptions and Professional Activities
(a) The cost of membership :in civic, business,
technical and professional organizations
is allowable provided: (i) the benefit
from the membership is related to the pro­ject;
(ii) the expenditure is for agency
membership; (iii) the cost of the member­ship
is reasonably related to the value
-42-
Section 11.2 Allowable Project Costs (Continued)
of the services or benefits received;
and (iv) the expenditure is not for
membership in an organization which
devotes a substantial part of its
activities to influencing legislation.
(b) The cost of books and subscriptions to
civic, business, professional, and
technical periodicals is allowable
when related to the project.
(c) Meetings and conferences. Costs are
allowable vThen the primary purpose of
the meeting is the dissanina.tion of
technical information relating to the
project and they are consistent with
regular practices followed for other
(non-Title VII) activities of the
recipient of award.
(25) Motor pools
The cost of a service organization which provides auto­mobiles
to the project at a mileage or fixed rate and/or
provides vehicle maintenance, inspection and repair ser­vices
is allowable.
(26) Payroll Preparation
The cost of preparing payrolls and maintaining necessary
related wage records is allowable.
(27) Personnel administration
Costs for the recruitment, examination, certi.f'ication
training, establishment of pay standards and related
activities for the project are allowable.
(28) Printing and Reproduction
Costs for printing and reproduction services necessary
for informational literature are allowable. Publica­tion
costs of reports of other media relating to pro­ject
accomplishments or results are allowable when
provided for in the award.
(29) Procurement Service
The cost of procurement service, including solicitation
of bids, preparation and awaro of contracts, and all
phases of contract administration in providing goods,
facilities and services for the project is allowable.
-43-
Section 11.2 Allowable Project Costs (Continued)
(30) Professional Services
Cost of professional services by individuals
or organizations not a part of the project is
allowable when for essential services that
, cannot be provided by persons receiving salary
support under the Title VII program. However,
consultant fees may not be paid to U. S. gov­ernmatt
employees. See Section 13 for other
specific policies on purchase of goods and
services.
(31) Taxes
In general, taxes or payments in lieu of taxes
which the recipient of award agency is legally
required to pay are allowable.
(32) Training and Education
The cost of in-service training customarily
provided, which directly or indirectly bene­fits
the project is allowable. Out-of-service
training involving extended periods of time is
allowable only When specifically authorized by
the State agency.
(33) Transportation
Costs incurred for freight, cartage, express,
postage and other transportation costs relating
either to goods purchased, delivered, or moved
from one location to another, are allowable.
(34) Travel
(a) Travel costs are allowable for expenses
for transportation, lodging, subsistence,
and related items incurred by employees,
'Who are in travel status on official
business incident to the project. Such
costs may be charged on an actual basis,
on a per diem or mileage basis in lieu
of actual costs incurred, or on a com­bination
of the two, provided the method
used is applied to an entire trip, and
results in charges consistent with those
normally allowed in like circumstances
in other recipient of award sponsored
activities. The difference in cost
between first class air accommodations
-44-
Section 11.2 Allowable Project Costs (Continued)
and less-than-first-class air accommo­dations
is unallowable except when less­than-
first-class air accommodations are
not reasonably available. Cost for
travel in privately owned automobiles is
limited to lO¢ per mile in accordance
with State policy.
(b) Foreign travel is not allowable without
the specific written approval of SRS.
11.3 Unallowable Costs
a. Bad debts
Any losses arising from uncollectable accounts and other
claims, and related costs, are unallowable.
b. Contingencies
Contributions to a contingency reserve or any similar
provisions for unforeseen events are unallowable.
c. Contributions and Donations
Contributions and donations are unallowable.
d. Construction
Costs of construction other than for minor alterations and
repairs are unallowable. See Section 11.2b (9) and (21).
Entertaimnent
e. Costs of amusements, social activities, and incidental
costs relating hereto, such as meals, beverages, lodgings,
rentals, transportation, and gratuities, are unallowable,
except when provided as specific service to older people.
f. Fines and Penalties
Costs resulting from violations of, or failure to comply
with, Federal, State and local laws and regulations are
unallowable.
g. Interest and other Financial Costs
Interest on borrowing (however represented), bond discounts,
cost of financial and refinancing operations, and legal and
professional fees paid in connection therewith, are unallow­able.
-45-
Section 11.3 Unallowable Costs (Continued)
h. Legislative Expenses
Salaries and other expenses of local govemrnental bodies
such as county supervisors, city comcils, school boards,
etc., whether incurred for purposes of legislation or
executive direction, are mallowa-ble unless such body is
the actual recipient of award; and then only those costs
are allowable which are directly related to the project
and are separate and distinct from the overall functions
of local government.
i. Losses
Actual losses which could have been covered by permissi­ble
insurance (through an approved self-insurance program
or otherwise) are mallowable. Neither AoA/SRS nor the
State agency will indemnify the project against liabilities
to third persons and other losses not compensated by insur­ance
or otherwise. However, costs incurred because of
losses not covered under nominal deductible insurance
coverage provided in keeping with sound management prac­tice,
and minor losses not covered by insurance such as
spoilage, breakage, and disappearance of small hand
tools which occur in the ordinary course of operations,
m~ be allowable.
j. l2q>enses of the Chief Executive Officer
The salaries and expenses of the chief executive of a
political sub-division are considered a cost of general
local government and are mallovmble unless this office
is the actual recipient of award; and Wen only those
costs are allowable which are directly related to the
project and are separate and distinct from the overall
executive functions of the local government.
k. Motion picture films
Project recipients of awards may not use Title VII funds
to produce motion picture films for viewing by the general
public (such as for broadcast on public or educational
television, showing to civic associations, or showing in
public places) without prior clearance with the SRS.*
However, films intended for viewing only by restricted
audiences in comection with the project may be produced.
"* As the SRS must clear any such requests with DHEW, projects should sul::mit
requests to produce films well in advance of the production date.
-46-
section 12 Cost Sh~ing Requirements
12.1 Matching Requirements
a. Non-Federal, state and/or local funds must make up at
least ten percent of the total allowable costs for
nutrition projects.
b. Federal and non-Federal resources used to meet a pro­ject's
net cost are commingled, i.e., each allowable
project cost has a Federal and non-Federal share.
12.2 Non-Federal Resources
a. Non-Federal participation may be in the fonn of either
cash or in-kind resources. Non-Federal, state and/or
local resources contributed toward allowable net project
costs may be used to earn Federal funds subject to the
conditions set forth in this section. However, resources
donated to the recipient of award may not be considered
as non-Federal participation when such resources, either
cash or in-kind, revert to the donor's facility or use.
b. Contributed resources which are eannarked for a parti­cular
individual or for members of a particular organi­zation
or sect may not be considered as non-Federal
matching funds.
c. Only when specifically authorized by this booklet or
Federal legislation, Federal funds received from other
sources may be considered as non-Federal contributions.
See Section l2.2e. (3) and (4). Cash contributions
represent the recipient of award I s outlay, including the
outlay of money contributed to the recipient of award by
public agencies and institutions, and private organizations
and individuals.
d. In-Kind Resources
(1) In-kind contributions represent the value of
non-cash contributions provided by (a) the
recipient of award, (b) other public agencies
and institutions, and (c) other private organi­zations
and individuals. In-kind contributions
may consist of charges for real property and
equipment, and the value of goods (such as food)
and services, including staff time contributed
by the State and local agencies, that directly
benefit and are identified with nutrition project
activities. Only 'When authorized by Federal legis­lation,
property purchased with Federal funds may
be considered as non-Federal in-kind contributions.
-47-
Section 12.2 Non-Federal Resources (Continued)
(2) All Projects May Claim:
(a) The value of the use of property to
which the recipient of award has
title (see Section 12.2d. (5) below);
(b) The value of the use of property
loaned to the project (see Section
12:"2d. (5) below);
(c) The value equal to the amount of
disbursements for goods and ser­vices
(including personnel services)
loaned to the project; and
(d) A value attributable to the services
of volunteers, either skilled or un­skilled.
(See Section 12.2d (6».
(3) A project may not claim as an in-kind resource:*
(a) The value of discounts allowed by
vendors for goods or services pur­chased
by the project;
(b) The value of any revenue waived by the
recipient of award as a result of
converting an item of property into a
project resource; or
(c) The value attributable to the use of
radio or television time.
(4) Any value claimed as an-kind resource must be:
(a) Identifiable in the project records;
(b) Necessary to the achievsnent of a
project's objectives;
( c) Fair and reasonable and may not
exceed the amount' allowable if the
item were actually purchased;
(d) Proportionate to the time the item
was available for use by the project;
* This list is not meant to be inclusive. Whenever the Project Director
has a question concerning the acceptability of a non-Federal in-kind
resource, the State agency should be consulted.
-48-
Section 12.2 Non-Federal Resources (Continued)
(e) Claimed only after the resource is
actually used by the project;* and
(f) Not included as contributions for
any other federally assisted program.
(,) . Depreciation and Use Allowances
The value attributable to any item of property
(including building space) to be used as an in-kind
resource is to be determined only by depreciation
(including use allovlance). Depreciation is the
acquisition cost of a building, capital improvements,
or equipment distributed over the estimated useful
life of the property. For items donated or loaned to
the project, the actual value of depreciation may be
claimed; however, such value may not revert to the
donor. In computing the value to be claimed for depre­ciation
and use allowances, see Section ll.2b (14).
(6) Volunteer Services
(a) Volunteer services may be furnished
~ professional and technical per­sonnel,
consultants, and other skilled
and non-skilled labor. The value of
volunteered service may be counted if
it is part of an approved project service,
is included in the approved budget, and
would otherwise by purchased on the labor
market.
(b) Volunteer services provided through the
ACTION agency Retired Senior Volunteer
Program may be used as non-Federal resources.
(c) Rates for volunteers should be consistent
with those regular rates paid for similar
work in other activities of the recipient of
award. In cases where the kinds of skills
required for the federally assisted activities
are not fOlIDd in the other activities of the
recipient of award, rates used should be con­sistent
with those paid for similar work in
the labor market in which the recipient of
awaro competes for the kind of services in­volved.
Suggested rates for use where no
local rates are available are contained at
the end of this section.
* Allin-kind resource is entered both as a receipt and a disbursement in
a project's accounts at the same time. See the Guide for Grantee Pro­gram
Accounting published by AoA for an illustration.
-49-
Section 12.2 Non-Federal Resources ( Continued)
(d) When an employer other than the recipient
of award furnishes the services of an
employee, these services shall be valued
at the employee's regular rate of pay
(exclusive of fringe benefits and overhead
cost) provided these services are in the
same skill for 'Which the employee is nonnally
paid.
(e) '!he number of hours of volunteer services
must be supported and accounted for by the
same methods used by the project for its
employees.
e. Federal resources matching Federal resources
(1) Non-Federal resources used to match other Federal
grants or contracts may not be used to match Title
VII project funds.
(2 ) Federal cash or in kind resources acquired during
current or prior years may not be used to match
funds provided under Title VII for project activities.
(J) Item (2) above is not applicable when there is expli­cit
statutory authorization for the use of Federal
funds to satisfy match:ing requirements in whole or in
part, as for example, Title I of P.L. 89-754 (Model
Cities Program, 42USC 3305d).
(4) Item (2) above is not applicable: (a) when the
Federal i'mOO :in question are those used to pay Indian
tribes for products produced under contract with the
Bureau of Indian Affairs, Depart:rrent of the Interior,
pursuant to 25 usc 47, and (b) to the Public Health
Service, Bureau of Indian Health contract funds.
-50-
Section 12.3
VALUATION OF VOLUNTEERED PERSONAL SERVICES
FOR PURPOSES OF COMPUTING THE NON-FEDERAL SHARE~!-
Hourly Rates
Accountant and Auditor
Architect
Bookkeeper
Brickmason, Stonemason, and Title Setter
Bus Driver
Carpenter
Cement and Concrete Finisher
Cook
Dental Technician
Dentist
Dietition and Nutritionist
Dressmaker Seamtress
Electrician
Engineer
Excavating, Grading and Road Machine Operator
File Clerk
Glazier
Instructor, College
Lawyer
Librarian
Nurse (other)
Nurse (registered)
Painter
Physician
Plasterer
Plumber
Printer
Professor, Assistant
Professor, Associate
Professor, College
Psychologist
Realtor
Recreation Worker
Secretary
stenographer
School Administrator
Social Worker (MSW)
Social Worker (other)
Surveyor
Teacher (elementary)
Teacher (secondary)
Therapist
Tinsmith, Coppersmith, Sheetmetal Worker
Truckdriver
olHf-Tutor
'I'y:pist
$ 9.00
9.00
3.00
6.50
4.00
6.00
5.50
3.50
5.00
22.00
5.50
3.50
6.50
9.00
5.50
2.50
5.50
6.00
20.00
6.00
3.00
4.50
5.50
24.00
6.00
6.50
5.00
7.50
9.00
11.00
7.50
6.50
4.00
3.50
3.00
9.00
6.00
4.00
4.00
6.00
6.50
5.00
6.00
4.00
3.00
2.50
olio This is a suggested schedule that may be used when local rates are
not available.
~H!- Tutor is defined as a person with one or more years of college.
-51-
Section 13 Purchase of Goods and Services
Goods and services obtained from a third party (an individual,
institution or organization outside the project's own organi­zation)
are subject to the conditions in this section. Third
party agreements (an agreement between parties to accomplish
a mutually beneficial objective).
13.1 General
a. 'lhe recipient of a nutrition project award may purchase
goods and services from public, non-profit or proprie­tary
agencies or individuals provided that such goods
or services are not available without cost from such
sources.
b. Such purchases must not result in the use of Title VII
funds to replace non-Federal funds available for goods
and services for target group eligible individuals.
c. Benefits from such purchases must not revert back to
individuals or groups contributing resources to the
project.
d. All purchase agreements with agencies must be in
writing and signed by authorized representatives of
the appropriate parties prior to the date set for
connnencement of their term.
e. The state agency shall evaluate the quality of goods
and services provided through third party agreements
to determine the suitability for project use.
13.2 Recipient of Award Responsibilities
a. The recipient of award retains overall responsibility
for all aspects of project operations.
b. The recipient of award must retain continuing basic
responsibility for determination. as to:
(1) Participants in the project; and
(2) Authorization, selection, quality effective­ness
and execution of services suited to the
needs of participants in the project.
c. 'lhe recipient of award must monitor the execution of .any
subcontract agreements in order to assure compliance with
all applicable standanis set forth in this booklet.
-52-
Section 13.2 Recipient of Award Responsibilities (Continued)
(1) Food vendors engaged by the recipient of
an award may make reasonable p rofit from such
operations in line with prevailing from
and profits in the area. Like any prudent
and cost conscious buyer, the recipient of
award shall not only refuse to pay more than
the going price for an item or services, but
also shall seek to control cost for the project.
(2) Prepared food must be of a quality commensurate
with its cost to the food vendor and must meet
the specifications set by the project.
d. Even though the recipient of award may subcontract with public
or private agencies or organizations to carry out the provi­sions
of Title VII, the overall operations of, and responsi­bility
for, a congregate meal site may not be subcontracted
to a private proprietary agency or individual.
13.3 Requirements of SUbcontractors
a. The sources from which goods and services are purchased must
conform to applicable provisions of Title VII of the Older
Americans Act, the regulations and this booklet.
b. Such applicable provisions must be set forth in the subcon­tractual
agreement.
c. All subcontracts are subject to all applicable state and
local laws and regulations.
d. Sources from which services are purchased must be licensed,
approved as meeting state licensing standards, meet applica­ble
accrediting standards, or in the absence of licensing or
accrediting standards, meet any standards or criteria estab­lished
by the State agency to assure quality of goods and
services.
13.4 Cost Requirements
a. Costs for the purchase of goods and services may not exceed
the amounts reasonable and necessary to assure good quality.
b. Recipients of project awards obligated by state or local law
to employ competitive bidding or other special purchasing pro­cedures
shall employ such procedures in making purchases for
the project.
c. Cost reimbursable contracts and affiliation agreements
Cost reimbursable contracts and affiliation agreements are
subject to the allowable cost principles contained in the
appropriate Office of 1-1anagement and Budget Circular or
-53-
Section 13.h Cost Requirements (Continued)
Federal Regulations; and to the cost conditions in this
section (13). The following documents contain the allow­able
cost principles for particular types of contractors :-l!-
state Gove~nts - "A Guide for State
Government Agencies. • ." U. S. DHEW
. (OASC - 6)
Local Governments - "A Guide for Local
Government Agencies Establishing Cost
Allocation Plans and Indirect Cost Rates
for Grants or Contracts with the Federal
Government" U. S. DHEW (OASC - 8)
Educational Institutions - "Guide for
Educational Institutions" U.S. DHEW
(OASC - 1)
Private Non-Profit Institutions - "A
Guide for Non-Profit Institutions" U.S.
DHEt-l (OASC - 5)
Commercial Organizations - "Principles
and Procedures for Use in Cost Reim­bursement
Type Supply and Research Con­tracts
with Commercial Organizations"
Code of Federal Regulations Title 41,
Public Contracts and l1anagement, Chapter
I Subpart 1-15.2
d. No item of equipment or other capital property valued in
excess of $100 may be acquired by the subcontractor through
the agreement wi.th the project without specific prior
approval of the SRS.
e. The recipient of project award is responsible for insuring
that all costs charged to the project as a result of cost­reimbursable
contracts' and affiliation agreements are allow­able
to the service purchased.
f. Records pertaining to the costs and expenses of cost­reimbursable
contracts and affiliation agreements must be
maintained and made available, upon request, to DREW audit
personnel. or the Comptroller General's Office in accordance
with the time periods set forth in section 14.2 of this
booklet.
oil- 'lhese publications are available for sale by the Superintendent of Docu­men"
t.s, vlashington, D.C. 20402. They should also be available in Deposi­tory
Libraries (for Federal publications).
-54-
Section 14 Project Financial Procedures
14.1 Project Obligations
a. Non-Federal resources must be contributed equal to
the non-Federal share of actual net costs for a
budget year. If a project reports Federal cash
received but unearned on the Nutrition Project
Financial Report for a budget year, the recipient
of a'l-vard then owes the State agency this amomt.
'lhis amount may constitute a cash advance on any
funds alvarded to the project by the State agency
for the following budget year.
b. If a portion of the Federal al-vard remains unearned
at the end of a budget year, this amount may be
can-ied-over to the subsequent budget year, if any.
Such carry-over amount must be authorized on the
notification of award.
c. If there is Federal cash unearned (non-Federal share
under-contributed) at the time the project is termin­ated,
this amount must be returned to the State
agency. If a project is unable to return this amount,
the State agency must assume responsibility for the
deficit from its own resources.
d. Liquidation of Obligations
All unpaid orders for goods or services purchased
during a budget year must be paid by the recipient
of award within thirty days after the end of that
budget year and before the final project financial
report is completed.
14.2 Accounting Requirements
a. All Federal nutrition project funds and any State and/or
local funds expended to earn such fmds shall be accounted
for in accordance with a State approved accounting system.
1he system used by the projects shall meet the following
minimum criteria:
(1) Federal nutrition project funds and non­Federal
funds used to earn such funds must
be accomted for separately from other re­cipient
of award fund accounts.
(2) The accounting records are to be itemized
in sufficient detail to show the exact
nature of all receipts and disbursements.
Each entry in the accounting records shall
refer to the document l'J'hich supports the
entry. Supporting documents shall be filed
in such a way that they can be readily located.
-55-
Section 14.2 Accounting Requirements (Continued)
(3) 'lhe accounting records shall provide accurate
and current financial reporting information.
(4) 'lhe accounting records of projects shall
fully disclose the total cost of the projects.
(5) .The accounting system shall possess an adequate
means of internal control to safeguard assets,
check ~~e accuraqy and reliability of accounting
data, promote operational efficiency, and encour­age
adherence to prescribed managanent policies.
b. All accounting recoms are to be kept readily available for
examination by personnel authorized to examine Title VII
accounts.
c. Such records shall be retained by public agencies, organi­zations
or institutions who are recipients of awards for a
period of three years, with the following qualifications:
(1) The records shall be retained beyond the three
year period if audit findings have not been re­solved;
(2) Records for non-expendable property which was
acqUired with Federal funds shall be retained
for three years after its final disposition;
(3) The retention period starts from the date of
submission of the final Quarterly Report of
Accountability for the budget year.
(4) Original docUIOOnts, such as invoices, checks,
time records, and payrolls in support of direct
costs, may be retained :in project files or in
the recipient of award I s regular files, provided
the recipient of award I s accounting records con­tain
adequate references for identifying and
locating the original documents. Microfilm
documents may be substituted for original records.
d. Private agencies, organizations or institutions who are
recipients of awards must ma:intain records for a minimum of
three years if audit has occurred and five years if audit
has not occurred, and in the case of audit exception, until
such exception has been cleared.
-56-
section 15 Audit Procedures
All financiaJ. activities under the Title VII program
are subject to Federal audit at both the State and
project level. DHElrI follows generally accepted audit­ing
practices in detennining that there has been a
proper accounting for and use of grant-in-aid funds.
'!he Secretary and the Comptroller General of the
United States or any of their duly authorized repre­sentatives
shall have access, for the purpose of audit
and examination, to any books, documents, papers, and
records that are pertinent to the project. Any excep­tion
which might result from Federal audit, whether
directed against the state agency or local recipients
of awards, shall be taken against the State agency.
Failure of a State agency to appeal a proposed audit
exception within sixty days after receipt of written
notification will make the action of DREW conclusive.
-57-
CHAPl'ER II
GUIDE FOR
APPLICATION FOR NUTRITION PROJECT AWARD
UNDER TITLE VII OF
THE OLDER AMERICANS ACT
ARIZONA STATE DEPARTMENT OF ECONOMIC SECURITY
SECTION ON AGTIW
1624 West Adams
.Fhoenix, Arizona 85007
CHAPTER II CONTAJNS FIVE PARTS
PART I - APPIJCATION COVER SHEET
PART n - AGREEHENT TO CONDITIONS BY APPLICANT AGENCY
PART III - BUDGET
PART IV - PLAN FOR THE PROJECT
PART V - COHPLIANCE ~iTI'H CIVIL RIGHTS ACT
-58-
APPLICATION FOR NUTRITION PROJECT AWARD
mSTRUCTIONS
Part I--App1ication Cover Sheet
1. Title of Project
Enter a brief (not to exceed 53 typewriter spaces, including punctuation
and spacing) descriptive title for the project.
2. type of Application
New - A project for which State agency support is being requested for
the first time.
Continuation - '!he succeeding portions of an approved project (usually
12 months) for which support is being requested.
Revision - An application which changes or replaces all or part of a
prior application.
Supplement - A request for the award of additional funds to be obligated
within the approved project period.
3. Name of Project Director
'!his is the person who has the immediate responsibilities for the
direction of the project for which support is being sought. Enter title,
department or appropriate subdivision of applicant agency, mailing
address, social security number, area code, and telephone number.
4. App1ic~t Agency
The applicant agency is that institution or organization which is to assume
legal nnd financial responsibility and accountability for the use and
disposition of any funds awarded on the basis of this application.
5. Self Explanatory
6. Dates of:
A. Project Period - Enter the dates of the proposed project period.
The project period is the total time period (sum of th~ budget years)
proposed for support of the project with Federal funds. The project
period should not exceed three years. The starting time for the pro­ject
should allow' sufficient time for review at the Regional and
State level.
Enter the total amount of Federal funds requested for the entire
proposed project period. This item need not be filled in for
continuation awards.
-59-
B. Budget Year - Enter the dates of the proposed budget yeur.
The budget year is a period of time within an approved project
period covered by a specific budget for which an award is made.
Budget years are generally 12-month periods, but may be for shorter
periods if appropriate.
7• ~of Organization
Check appropriate box.
8. Payee
Enter the Name, Title, and full Address of the financial person to whom
checks are to be sent.
11. ~nature ??2; Date
Enter in ink the signature of the person named. in Item 5. Per signatures
are not acceptable.
-60-
STATE OF ARIZONA
DEPARTMENT OF EDONOMIC SECURITY
SIDTION ON AGING
1624 West Adams
Phoenix, Arizona 85007
APPLICATION FOR NUTRITION PROJECT AWARD
UNDER TITLE VII OF THE OLDER AMERICANS ACT
(FOR ST~TE AGENCY USE) ..
\
1. TITLE OF PROJECT:
2. TYPE OF APPLICATION:
O'NEW o CONTINUATION OR~VISION o SUPPLEMENT
3. PROJECT DIRECTOR (NAME, TITLE, DEPARTMENT, AND 6. OATES OF: FROM THROUGH AMOUNT
ADDRESS· STREET, CITY, STATE, ZIP CODE):.
A. PROJECT S
PERIOD
$
B. BUDGET
YEAR .
7. TYPE OF ORGANIZATION:
; o PUBLIC AGENCY
I\ IAL SECURITY NO.: AREA CODE TELEPHONE? NO. o PRIVATE NON·PROFIT AGENCY
4. APPLICANT AGENCY (NAME AND ADDRESS· 8. PAyeE (SPECIFY TO WHOM CHECKS SHOULD BE
STREET, CITY, STATE, ZIP CODE): SENT· NAME, TITLE, !"DDRESS):
.
. . •
5. NAME, TITLE, ADDRESS OF OFFICIAL AUTHORIZED ,9. (FOR STATE AGENCY USE)
TO SIGN FOR APPLICANT AGENCY: .
10. TERMS AND CONDITIONS: It is understood end agrnd bV the undersigned that; 1) funds awarded as a resLJILPf this request are to be
.xpended for the purposes set forth herein and in accordance with ell applicable laws, regulations, policies,and proclXlures of this State
.nd the Administration on Aging, Social and Rehabilitation Service of the U.S. Department of Health. Education, and Welfare; 2) any
(
proposed changes in the proposal as approved Will be sU~llted in writing by the applicant and upon notific.llion of approval by the
Stateagancv shall be deemed incorporated into and become a part of this agreement; 3) the attached Assurance of Compliance
(Form AoA·4411 wit~ the Department of Health, Education, end Welfare RegulatIOn issued pursuant to Title VI of the Ciyj I Ri'1 hU
Act of 1964 applillS to this proposal a, approved; and 411unds awarded bV the State Agoncy may be termioJtl'd at any time for -.
violations of anv terms and requirements of this i1orHment.
,.
(- .. ' ~
11. SIGNATURE (PERSON NAMED IN ITEM 6): t - L
SIGNATURE DATE \. !
.0
PART II
AGREEMENT TO CONDITIONS BY APPLICANT AGENCY UPON SUffinSSION OF APPLICATION
FOR NUTRITION PROJECT AWARD.
The applicant agency submits this applicatiol1 for a Nutrition Project Award
under Title VII of the Older Americans Act of 1965, as amended, in keeping
with the provisions of this Part and the information provided in Parts II
and III of this application. The ----~--::-:-..,..."""":""-:---"T"""------
(Applicant Agency)
understands and agrees that the following provisions are part of the
official application and as such become binding upon the conduct of the
p:r;-oject subsequent to the award of any funds by the State agency.
The Applicant Agency:
1. Certifies it has subm~tted this application for a Nutrition
Project Award for comment to the following regional council
of govemments which has jurisdiction over the geographic area
selected as the proposed project area: ,
----------', , , ":"":'------:-:---r-~_:__. Where comments have been received,
they are attached to this application.
2. Agrees that the project will be carried out in accordance with
Title VII of the Older Americans Act, the program regulations
issued thereto, the policies and procedures establiShed by the
State agency for the Nutrition Program, and the tems and condi­t;
i.ons of this application as approved by the State agency in
making any award of funds. In this connection, the applicant
agency certifies that the accompanying application for grant
award under the Older Americans Act is in complianoe, and the
operation of any project receiving such a grant award will be
in compliance with the following:
a. The Federal requirements for direct and indirect costs.
b. The Federal requirements covering in-kind resources
and their accountabUity.
c. Federal resources (funds, property, labor, etc.) will
not be used directly or indirect~ to match addition­al
Federal funds. Exception---when there is explicit
statutory authorization for the use of Federal funds
to satisfy matching requirements in whole or in part,
as for example, Title I of P.L. 89-754 (Model Cities
Program, 42 USC3305 D).
d. Local resources already used to match Federal funds
will not again be used to match Federal funds.
-62-
PART II-Agreement (Cont.)
3. Agrees that where subcontracts are proposed for the
operation of meal sites, preparation of food, or
the provision of meals or supporting social services,
and are approved as part of any award of funds, the
applicant agency retains full and complete responsi­bility
for the operation of the project in keeping
with the policies and procedures established by the
State agency for the Nutrition Program. The appli­cant
agency will be held accountable by the state
agency for all project expenditures; and will ensure
that all expenditures incurred by the subcontracting
agency (ies) will be in accordance with the cost
policies and procedures established by the State
agency, in keeping with guidelines of the Administra­tion
on Aging. Copies of the proposed subcontracts
are submitted with this application.
4. Agrees to cooperate in joint planning with exist­ing
and any future area or local agencies responsi­ble
for comprehensive planning in aging in the geo­graphic
area for which the project is proposed, and
with the providers of services to the aging in the
area in order to provide additional needed services
to nutrition project participants.
5. Agrees to provide for such training as may be
necessary to enable paid and volunteer project
personnel to administer the project. Costs for such
training have been included in the bUdget developed
for the project and submitted as part of this appli­cation.
6. Agrees to cooperate and assist in any efforts under­taken
by the State agency or the Administration on
Aging to evaluate the effectiveness, feasibility, and
costs of the project.
7. Agrees that more than one-half of the membership of
the Project Council established for the project shall
be actual consumers of the nutrition services of the
project and shall be representative of the congregate
meal sites and i'urther agrees that the operations of
the Project Council shall be carried out in accordance
with the policies and procedures established by the
State agency.
8. Agrees that no personal information obtained from an
individual in conjunction with the project shall be
disclosed in a fom in which it is identified with
him without written consent of the individual con­cerned.
-63-
PART II-Agreement (Cont.)
9. Agrees to keep such records and make such reports
in such form and containing such information as
may be required by the State agency and in accord­ance
with guidelines issued by the Administration
on Aging.
10. Is cognizant of and agrees to operate the project
fully in conformance with all applicable State and
local standards, including fire, health, safety
and sanitation standards, prescribed in law or
regulations.
11. Agrees to maintain such accounts and documents as
will serve to permit expeditious determination to
be made at any time of the status of funds within
the award, including the disposition of all monies
received from the State agency, and the nature and
amount of all charges claimed to be against such
funds.
12. Agrees to comply with Title VI of the Civil Rights
Act of 1964 (P.L. 88-352), and the regulation issued
pursuant thereto. An Assurance of Compliance with
such regulation (Form HEW-441) is attached. Also,
further certifies that the applicant agency has no
commitments or obligations which are inconsistent
with compliance with these and any other pertinent
Federal regulations and policies, and that any
other agency, organization, or party which parti­cipates
in this project shall have no such commit­ments
or obligations.
Name and Title of Official Authorized to
Sign for Applicant Agency
-64-
Signature
Date
Revised 6/14/73
PART III
General
This part of the application consists of: (1) Budget Summary Form which provides a
summary of project costs for a budget year; (2) Supporting Budget Schedules which
relate line item costs with program activities of the project; and (3) Budget
Estimates for Subsequent Budget Years.
Specific Instructions:
BUDGET SUMMARY FOR BUDGET YEAR
Complete the individual Supporting Budget Schedules before completing this Part.
Insert the dates of the proposed budget year. This is a period not to exceed 12
months but may be for a shorter period, if appropriate. The dates entered on the
Budget Summary Form should be the same as those entered in Item 6.B of the Appli­cation
Form, Part I.
Complete Section A., Direct Costs, as indicated. Meals costs (column 2) are
obtained by adding the totals for column 2 and 3 on the supporting budget
schedules. Supporting Social Services Costs (column 3) is the sum of the
costs entered under columns (5) through (11) of the Supporting Budget Schedules
for each of the budget categories listed. Column (4), Administrative costs, are
taken from the total of column (12) of the Supporting Budget Schedules. Place
budget category totals in column (5).
Complete Section B., Indirect Costs if applicable, as directed. The Indirect
Costs to be entered in this Section are ~ those associated with the applicant
agency. Indirect costs associated with subcontractors must not be entered here.
To claim indirect costs, all grantees must have an indirect cost rate which has
been negotiated with the State Agency on Aging. Be sure to check block marked
Salaries and Wages or block marked Total Direct Costs.
Please note that unless the negotiated agreement stipulates otherwise, fringe
banefits must be excluded when salaries and waqes are used as comrut~tion base.
Section C: Enter the Total Project Costs in the space provided.
Section 0: Enter the amount of Project Income if such income has been budgeted
as part of the Direct Costs of the project. If not, enter a zero.
Section E: Subtract Project Income (line D) from Total Project Costs (line C)
to arrive at Project Net Costs.
Section F: Enter the percentage and amount of Local Non-Federal Participation.
Section G: Enter the percentage and amount of Funds Requested. The sum of
lines F and G should equal the amount entered on line E.
-65-
Revised 6/14/73
SUPPORTING BUDGET SCHEDULES
The Supporting Budget Schedules are designed to relate line item costs (listed
under Budget Category) with the program activities to be undertaken by the
~roject during the proposed budget year. Each cost is to be entered across
from the proper Budget Category and under the Program Activities heading.
Enter all estimated costs to be met from funds re uested, local non-Federal
participation (cash and in-kind), and project income. U.S.D.A. donated foods
may not be included in the budget either as in-kind matching or as an in-kind
payment from the State agency.) All amounts entered are to be cumulative
through the end of the proposed budget year.
If a cost item listed under any budget category is to be used in support of
more than one program activity, the costs related to that item must be pro­rated
across the number of actvities for which the item is used or in­volved.
For example, if any individual staff member's time is spent on more
than one activity, the related salary and fringe benefits costs must be dis­tributed
across the appropriate program activities based on the percentage of
time spent for each program activity. The figure shown in column 13 (total
costs) should be the total annual salary for the position or individual described.
If the applicant agency proposes to enter into any subcontracts for the opera­tion
of meals sites, the costs related to such subcontracts must be treated as
part of the total budget and distributed among the appropriate budget categories
and program activities. All other proposed subcontracts for less than an entire
site operation (e.g., preparation of meals, provision of social services or
other goods and services) must be identified separately and should be entered
only under the budget category - Other Costs. (See further instuctions under
Item 6, Other Costs, below.)
1. Personnel (p.2) - List by name (if available) and title of position each indi­vidual
whose salary and fringe benefits will be a cost to the project. Enter
the dollar amount of such costs under the appropriate program activity.
Enter the total Personnel Costs for each program activity and the Total Costs
in the column provided.
2. Equipment (p.3) - An item of equipment is an article of property procured or
fabricated which is complete in itself, is of a durable nature, and has an
expected service life of more than one year. (This budget category shou~d
also include the cost of any other capital assets - land and buildings.)
List individually each item of equipment for which costs will be incurred
(including insurance, freight, and accessories). Enter the cost for each
item under the appropriate program category. Enter the total Equipment
Costs for each program activity and the Total Costs in the column provided.,
-66-
Revised 6/14/73
LOCAL NON-FEDERAL PARTICIPATION
List by source and amount, items proposed as Local non-Federal participation
in the project. Enter these items as appropriate, under CASH RESOURCES or IN­KIND
RESOURCES.
BUDGET ESTIMATES FOR SUBSEQUENT BUDGET YEARS
Enter the number of the budget year in columns (1) and (2), for example second,
third, etc.
Complete rest of form as indicated.
-67-
(STATE AGENCY)
APPLICATION FOR NUTRITION PROJECT AWARD
UNDER TITLE VII OF THE OLDER AMERICANS ACT
(FOR STATE AGENCY USE)
Rev. 6-15-73
1. TITLE OF PROJECT:
2. TYPE OF APPLICATION:
DNEW o CONTINUATION D REVISION D SUPPLEMENT
3. PROJECT DIRECTOR (NAME, TITLE, DEPARTMENT, AND 6. DATES OF: FROM THROUGH AMOUNT
ADDRESS· STREET, CITY, STATE, ZIP CODE):
A. PROJECT $
PERIOD
$
B. BUDGET
YEAR
7. TYPE OF ORGANIZATION:
DPUBLIC AGENCY
SOCIAL SECURITY NO.: AREA CODE TELEPHON~NO. DPRIVATE NON·PROFIT AGENCY
4. APPLICANT AGENCY (NAME AND ADDRESS· 8. PAYEE (SPECIFY TO WHOM CHECKS SHOULD BE
STREET, CITY, STATE, ZIP CODE): SENT· NAME, TITLE, ADDRESS):
5. NAME, TITLE, ADDRESS OF OFFICIAL AUTHORIZED 9. (FOR STATE AGENCY USE)
TO SIGN FOR APPLICANT AGENCY:
10. TERMS AND CONDITIONS: It is understood and agreed by the undersigned that; 1) funds awarded as a result of this request are to be
expended for the purposes set forth herein and in accordance with all applicable laws, regulations, policies, and procedures of this State
and the Administration on Aging, Social and Rehabilitation Selvice of the U.S. Department of Health, Education, and Welfare; 2) any
proposed changes in the proposal as approved will be submitted in writing by the applicant and upon notification of approval by the
State agency shall be deemed incorporated into and become a part of this agreement; 3) the attached Assurance of Compliance
IForm AoA-441) witl> the Department of Health, Education, and Welfare Regulation issued pursuant to Title VI of the Civil Rights
Act of 1964 applies to this proposal as approved; and 4)tunos awarded by the State Agency may be terminated at any time for
violations of any terms and requirements of this agreement.
11 SIGNATURE' (PERSON NAMED IN ITEM 51
-'--'~~STGNAiURI:-~ '-.- --_... --.-DArr~--·--
.
BUDGET SUMMARY FOR BUDGET YEAR PAGE 1 OF 7
FROM TO
(COMPLETE SUPPORTING BUDGET SCHEDULES BEFORE THIS PARTI
f-~ev. 6-15-73
A. DIRECT COSTS
SUPPORTING SOCIAL ADMINISTRATIVE TOTAL PROJECT COSTS
BUDGET CATEGORY MEALS COSTS SERVICES COSTS COSTS ISUM OF COLUMNS 2, 3. & 4)
111 121 131 (4) 15)
1 PERSONNEL (INCLUDING $ $ $ $
FRINGE BENEFITSI
2. EQUIPMENT
3 RAW FOOD
4. TRAVEL (STAFF ONLY)
5. CONSULTANTS
6. OTHER COSTS'
7. TOTAL DIRECT COSTS
$ $ $
B INDIRECT COSTS
a. IS INDIRECT COST REQUIRED' d. BASED ON:
ONO DYES IJ SALARIES AND WAGES
b. PERCENTAGE RATE: ---% I'] TOTAL ALLOWABLE
r DIRECT COSTS
c. NEGOTIATED AGREEMENT:
$
DATE e. BASE: $
$
C. TOTAL PROJECT COSTS (TOTAL LINES A(517 AND BI
$
D. PROJECT INCOME
$
E PROJECT NET COSTS (LINE C LESS LINE DI
$
F LOCAL NON-FEDERAL PARTICIPATION %
$
G FUNDS REQUESTED (LINE E LESS LINE FI %
'INCLUDES CONSUMABLE SUPPLIES EXCEPT RAW FOOD
SUPPORTING BUDGET SCHEDULE PAGE 3 OF·7 1 R"" h.. 1